Piece Rate Wage Calculator

Work out piece rate wage instantly with clear inputs, formula shown and shareable results.

About Piece Rate Wage Calculator

Piece-rate pay is good pieces x rate per piece, with rejects excluded so quality is not rewarded. Almost all jurisdictions require a guaranteed minimum regardless of output, so the wage payable is the higher of piece earnings and the statutory or contractual floor.

Formula

Piece-rate wage

Piece earnings = (pieces - rejects) x rate; wage payable = max(piece earnings, guaranteed minimum)

Worked example

With the default values below, Piece Rate Wage Calculator returns Wage Payable of $1,071.20. Change any input above and every figure here is recalculated in your browser.

Inputs used

Pieces Producedminimum 0: 420
Rate Per Pieceminimum 0: 2.6
Guaranteed Minimum Wageminimum 0 per day: 620 per day
Rejected Piecesminimum 0: 8

Results

Wage Payable: $1,071.20
Piece-Rate Earnings: $1,071.20
Top-Up To Guaranteed Minimum: $0.00
Effective Rate Per Good Piece: $2.600

Step by step

1Values used
2Piece-rate wage
3Wage Payable= 1,071.20
4Piece-Rate Earnings= 1,071.20
5Top-Up To Guaranteed Minimum= 0.00
6Effective Rate Per Good Piece= 2.600

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Piece-rate systems must comply with minimum wage, overtime and deduction rules in your jurisdiction. Confirm the applicable law before implementation.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Piece-rate systems must comply with minimum wage, overtime and deduction rules in your jurisdiction. Confirm the applicable law before implementation.

Frequently Asked Questions

Should rejects be deducted?

Excluding them from earnings is standard, but deducting the material cost as well is often unlawful. Check the applicable wages legislation before making any deduction beyond non-payment for the piece.

How is the piece rate set?

From the standard minute value and the target hourly earnings: rate per piece = SMV x target earnings per minute. It must be set so that an operator at standard performance earns at least the guaranteed wage.