A company employs its workers for a single shift of 8 hours for 25 days in a

Question:

A company employs its workers for a single shift of 8 hours for 25 days in a week. The company has recently fi xed the standard output for a mass production item and introduced an incentive scheme to boost the output. The details of wages payable to the workers are as follows:

(i) Basic wages/piece-work wages @ Rs. 2 per unit subject to a guaranteed minimum wages of Rs. 50 per day.

(ii) DA at Rs. 50 per day.

(iii) Incentive bonus:
Standard output per day per worker = 40 units.
Incentive bonus up to 80% effi ciency = Nil.
Incentive bonus for effi ciency above 80% = Rs. 80 for every 1% increase above 80%.
The details of performance of four workers for the month of June 2009 are as follows:

image text in transcribed