Calculate Remuneration of Employee of an Organisation
Based on the data underneath that you are necessary to calculate the remuneration of all employee like determined with each of the specified methods
i. Hourly rate
ii. Basic piece rate
iii. Individual bonus scheme whereas the employee obtains the bonus in proportion of the time saved to time permitted
Name of employee
Salmon
Roala
Pike
Units produced
270
200
220
Time allowed in minutes per unit
10
15
12
Time taken (hours)
40
38
36
Rate per hour (Kshs)
125
105
120
Rater per unit (Kshs)
20
25
24
Solution
40 x 125
38 x 105
16 x 120
= 5000
= 3990
= 4320
ii. Piece rate
Gross wage
270 x 20
200 x 25
220 x 24
Therefore regular wage
= 5,400
= 5,000
= 5,280
iii. Bonus scheme
Time saved
Time allowed
(270x100)/60
(200x15)/60
(220 x12)/60
= 45 hours
= 50 hours
= 44 hours
Time taken
40 hours
37 hours
36 hours
5 hours
12 hours
8 hours
Bonus time = (Time taken/ Time allowed) x total time saved
(40 / 45) * 5
(38 / 50) * 12
(36 / 44)*8
= 4.4
= 9.12
= 6.55
Bonus Pay
4.4x125 = 550
9.12x105 = 958
6.55x120= 786
Total pay
= Gross pay + Bonus
5,000 + 550
3990 +958
4320 + 786
Using hourly rate
= 5550
= 5958
= 6066