Employees paid under a time related pay method are paid for the hours that they
spend at work regardless if the amount of production and output that they achieve
within that time. Time related pay employees can be split into salaried employees
who may be paid monthly or weekly for a specified number of hours per week or
hourly rate employees who are paid a set hourly rate for each hour of work.
Where salaried employees work for more than the standard or contracted hours for the
week, then employment agreement may specify an overtime payment arrangement to
be paid for the additional hours worked by an employee.
Illustration:
Sinha Ltd pays a time rate of £12/ hr to its direct labour for a standard 35 hour week.
Any of the labour force working in excess of 35 hours is paid an overtime rate of £15
per hour. Calculate the gross wage per week for the workers.
