Balance or Debt Method
This method is a combination of time wage and piece wage methods. In this method, a worker is paid a fixed wage based on the time rate with a provision of piece wage method. How? This is just like minimum rent with a provision of short working recoupment in case of royalty. If a worker produces less quantity in a period, he is given wages as per time rate and excess payment over piece rate is treated as credit.
This credit is compensated in the period when he/she produces more than time rate wages. Thus, he is given time wage whether he produces more or less than it, i.e., time wage. This wills be more clear from an example.
Suppose, the time wage is Rs. 500 per week and the piece wage rate is Rs. 10 per unit. As per his production, his wages during the 4 weeks in a month will be as shown in Table 15.1
Table 15.1: Wages under Balance Method:
This method ensures the worker the receipt of a fixed amount as wage in all cases. From workers point of view, this method has relevance in work situation where work flow is flexible /irregular such as docks. This method is also known as ‘debt method’. The National Commission on Labour (NCL) has identified different methods of wage payment by employee contribution. This is borne out by Table 15.2.