Description of salary determination methods

• Not all employees who work receive a salary. Some employees receive wages
• Businesses make use of different systems to pay employees
• Two salary determination methods are used by businesses, namely piecemeal method and time-related method
• Piecemeal: With this method, workers are paid according to the number of items or units produced
• Time-related: For this method, workers are paid from the time that they spend at work or on a task
• Piecemeal: Workers not paid for hours

  Time-related: Workers with same qualifications and experience are paid using salary scales regardless of amount of work done
• Piecemeal is used in factories

  Time-related in used in private and public sector businesses