What is a per-piece pay rate or piecework?

What Is a Per-Piece Pay Rate or Piecework? In per-piece pay structures, payment is based on the number of “pieces” of work that a worker completes. The worker is paid a monetary rate of a certain number of cents or dollars for each piece of work. What constitutes a “piece” worthy of the set rate is defined in advance.

Can a freelancer be paid a per piece rate?

In other words, a per-piece rate pay can act as an incentive for employees. Note that only employees are protected by minimum wage laws, not independent contractors, and per-piece pay structures are often used as pay rates for freelancers or independent contractors.

How much do you get paid for a piece of work?

The worker is paid a monetary rate of a certain number of cents or dollars for each piece of work. What constitutes a “piece” worthy of the set rate is defined in advance.

Can a contractor get paid for piecework work?

However, employees who are not contractors can be paid piecework pay, too. Piecework rates typically depend on the job and product produced. Types of businesses that may offer piecework pay include:

How much does a piece rate employee make?

For example, assume a piece rate employee works 50 hours and earns a total of $750 in piece rate wages over the course of the week. The base hourly pay is $15 ($750 / 50 Hrs = $15 per hour).

How to calculate piece work pay per unit?

Follow the easy-to-use formula below to calculate piecework pay: Piecework Pay = piece rate per unit x number of units produced Examples of calculating piecework Let’s say an employee makes jewelry.

The worker is paid a monetary rate of a certain number of cents or dollars for each piece of work. What constitutes a “piece” worthy of the set rate is defined in advance.