Calculation of weekly Wages

LABOUR COST

Types of Labour

Labour Costs

a) Monetary Benefits

i. Basic Wages

ii. DA

iii. Employer’s Contribution to Provident Fund

iv. Production Bonus

v. Profit Bonus

vi. Old Age Pension

vii. Retirement Gratuity

viii. Production Bonus

b) Fringe benefits

i. Subsidized Food

ii. Subsidized Education to the children

iii. Subsidized Housing

iv. Medical Facilities

v. Holidays pay

vi. Recreational Facilities

Departments

1. Personal Department

2. Engineering Department

3. Rate or Time and Motion Study Department

4. Time-Keeping Department

5. Pay-roll Department

6. Cost Accounting Department

Calculation of Wages:

PROBLEM:

Calculate the normal and overtime wages payable to a workman from the following data

Days	Hours Worked
Monday	8 hrs
Tuesday	10 hrs
Wednesday	9 hrs
Thursday	11 hrs
Friday	9 hrs
Saturday	4 hrs
Total	51 hours
Normal working hours	8 per day
Normal rate	Rs.1.00 per day
Overtime rate	Upto 9 hours a day at a single rate and over 9 hours in a day at double rate; or upto 48 hours in a week at single rate and over 48 hours at double rate whichever is more beneficial to the workman.

Solution

Calculation of Wages (day wise)

	Rs.
Normal wage= 44 x1	44
Overtime At single Rate 4 x1 At Double Rate 3 x 2	4 6
Total Wages	54

Weekly Basis

In Both cases , Wages is Rs.54

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