In last articles I have discussed the time wage system and piece wage system, let us today discuss the difference between the two:
1) Security: Time wage systems provide a security to the workers as they are assured of their wages. While wages in piece wage system varies from month to month.
2) Wastage: wastage of time is high in time wage system and in piece wage system wastage of raw material, machines is high.
3) Supervision: supervision is required so that there will be no wastage in time wage system but in piece wage system no supervision is required.
4) Quality: quality of the product is good in time wage system as compared to piece wage system.
5) Determination of wages: wages are determined on the basis of time spent in time wage system while in piece wage system wages are determined on the basis of number of pieces produced.
6) Support from trade union: trade union support to time wage system and oppose piece wage system due to lack of assurance of minimum wages.
7) Cost of maintenance: cost of maintenance is less because machines are properly handled while in piece wage system maintenance cost of machines is more.
These are the differences between time wage and piece wage system.