Chapter 5

Katie Start
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Elements of costing 2016 specification
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Chapter 5
1 Methods of calculating payments for labour:
1.1 Timerate
1.1.1 Timerate is based on payment for the amount of time spent working.
1.2 Overtime
1.2.1 An overtime rate is a timerate that is paid for time worked in excess of the normal contracted time.
1.3 Piecework
1.3.1 Piecework is payment based on the number of items produced by the employee.
1.4 Bonus
1.4.1 A bonus payment is an extra payment paid to employees as a reward for productivity.
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