Advantages of piece wage system:

1. It pays the work man according to his efficiency as reflected in the amount of worth turned out by him. It satisfies an industries and efficient worker, for he finds that his efficiency is adequately rewarded. This gives him a direct stimulus to increase his production.

2. As the direct labour cost per unit of production remains fixed and constant, calculation of costs while filling tenders and estimates becomes easier.

3. The total cost labour per unit of production comes down with a larger output because the fixed overhead burden can be distributed over a greater number of units.

4. It requires less supervision because the workers as themselves in hurry to do all.

5. It avoid frequent industrial disputes which otherwise are inevitable.