Teachers receive a time rate pay. Image credit atlantablackstar.com

### ZIMSEC O Level Business Studies Notes: Hourly rate/Time rate

• This is a way of paying workers based on the time/hours spent working
• The number of hours is calculated by multiplying a pre-agreed rate with the number of hours/time worked
• This is the most common way of paying manual, clerical and non-management workers
• This method is directly linked to the level  of output
• The formula for time rate is:
• $\text{Wages} = \text{(Wage Rate per hour/week) x Time spent working}$

• It is simple to calculate and easy to understand
• Places emphasis on quality instead of just quantity
• It is suitable for workers whose output is not measurable e.g. teachers and security guards
• All employees earn a similar wage for similar work (equality among workers)
• Results in less wastage of inputs and raw materials on the production line