Disadvantages of the piece wage system:

1. Payment under this system is irregular and uncertain for the workers, point of view and thus creates uncertainly in the life of workers as well as he feels unable to maintain a desirable standard of life because of the uncertainly of the amount of wages.

2. During the periods of illness, or disability, the worker is not paid any amount, whereas in fact, during these periods monetary need becomes more pressing.

3. Too much emphasis on the quantity of the production may lower the quality of products.

4. The establishment of piece rates is difficult and often becomes a source of graveness on the part of workers. Without undertaking time and motion study and having past experience, piece rate may be set as low a level that it exercises a demoralizing effect on the workers.

5. This is a greater chance of deterioration in the quality of work owing to over on the part of the workers to increase production. This may tell upon their health, resulting is a loss of efficiency.