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Q. Explain Accelerating premium system?
Accelerating premium system: there are the systems which provide for a guaranteed minimum wage for output below the standard. For the low and average increases in the o/p above the standard small increment in earnings are allowed. Increasingly large earnings are conceded for above average o/p, the increment being different for each 1 per cent increase in the o/p. Very significant in earnings are given for really high o/p. In this system, the production is pushed up higher and higher by discouraging low o/p and rewarding at an increasingly effective rate higher o/p. Such schemes are generally adopted when much higher o/p that what are currently obtained are to be achieved.
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