Disadvantages of time wage system:

1 it does not take into account the fact that men are of different abilities and that if all the persons are paid equally better workmen will have no incentive to work hard and better.

2 as there is no specific demand on the worker that a piece of work needs to incomplete in a given period of time there is always the possibility of systematic evasion of work by workmen.

3 as the employer does not know the amount of work that will be put in by each worker the total expenditure on wages for turning out a certain piece of work cannot be adequately assessed.

4 as no record of an individual worker's output is maintained it becomes difficult for the employer to determine his relative efficiency for purpose of promotion.

5 it destroys the morale of workers and efficient workers are either driven out or their efficiency is pulled down to the level of inefficient workers.