Work out piece rate wage instantly with clear inputs, formula shown and shareable results.
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.
Piece-rate wage
Piece earnings = (pieces - rejects) x rate; wage payable = max(piece earnings, guaranteed minimum)
Piece-rate systems must comply with minimum wage, overtime and deduction rules in your jurisdiction. Confirm the applicable law before implementation.
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.
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.