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This payroll method is used in the production areas in which employees perform all operations necessary to the manufacture of a final product. For calculating salaries per employee for each type of product manufactured is associated with a charge per unit of product.
The charge is given by the number of products that can be made in the unit for 8 hours / day (the normal working day).
Depending on the level of understanding, skills and training level of each employee, the number of units produced in normal working hours may vary positively or negatively from the attributed norm.
The charge per unit of product is the amount of labor of an employee for producing the unit.
The salary in individual agreement for each employee is the result of multiplying the number of products made by the employee in a month charge of the unit of product.
Salary calculation in agreement represents the number of manufactured products (in a month) multiplied by the charge per unit. The salary agreement can be applied individually or collectively.
What does payroll through indirect agreement means
The indirect agreement is a form of payroll used for functions which, by their nature, support income generating activities.
If there is an indirect agreement, the staff salaries that serving more salaried workers with an agreement and whose realizations are conditioned by how they are served is granted in proportion to the average level of fulfillment of the norms of the concerned workers.