PIECE RATE Meaning and
Definition
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Piece rate is a method of payment commonly used in certain industries where workers are compensated based on the quantity of work they produce rather than the hours they work. It is a form of performance-based pay, where the employee's earnings are directly linked to their productivity.
Under the piece rate system, an employee receives a fixed monetary amount for each unit of output they produce. This output can be measured and quantified in various ways, depending on the nature of the work being performed. For example, in manufacturing industries, workers may be paid per item produced, while in agriculture, they may be paid per bushel harvested.
Piece rate systems are often used to incentivize productivity and efficiency, as it encourages workers to produce more in order to earn higher wages. However, there can also be potential drawbacks and concerns. Some critics argue that it may lead to exploitation, as workers may be forced to work longer hours or sacrifice quality in order to meet production targets. Additionally, piece-rate systems may not guarantee a minimum wage, particularly if the employee is unable to meet the productivity requirements.
Overall, piece rate is a payment system where workers are remunerated based on the quantity of work they produce, leading to potential benefits and challenges depending on its implementation and industry context.
Common Misspellings for PIECE RATE
- oiece rate
- liece rate
- -iece rate
- 0iece rate
- puece rate
- pjece rate
- pkece rate
- poece rate
- p9ece rate
- p8ece rate
- piwce rate
- pisce rate
- pidce rate
- pirce rate
- pi4ce rate
- pi3ce rate
- piexe rate
- pieve rate
- piefe rate
- piede rate
Etymology of PIECE RATE
The word "piece rate" is composed of two separate components: "piece" and "rate".
- "Piece" originated from the Old English word "pecan" meaning "to divide, separate, or cut". Over time, its meaning evolved to refer to a single item or a portion of something. In the context of labor or work, "piece" refers to a specific task or unit of production.
- "Rate" comes from the Latin word "ratus" meaning "reckoned or considered". In English, it refers to a fixed price, tariff, or charge for something.
Combining both components, "piece rate" emerged to describe a method of compensation or remuneration where workers are paid based on the number of units or pieces they produce rather than receiving a fixed hourly wage. The term first appeared in the mid-19th century, reflecting the industrialization and increased division of labor during that period.
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