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Illustrations · Q5

Q.A job has a Time Allowed of 10 hours at a Time Rate of ₹20 per hour. The worker completes it in 8 hours. Calculate the Bonus and Total Earnings under BOTH the Halsey and the Rowan Premium Bonus Schemes, and state which scheme gives the worker the higher total earnings on this job.

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Time Saved = 10 − 8 = 2 hours, which is 20% of the Time Allowed — well below the 50% crossover point (Section 4.C), so Rowan is expected to pay the larger bonus here.

Halsey Scheme:

Bonus = 50% × 2 × ₹20 = ₹20.

Basic Wages = 8 × ₹20 = ₹160.

Total Earnings = 160 + 20 = ₹180.

Rowan Scheme:

Time-Saved Ratio = 2 ÷ 10 = 0.20.

Bonus = 0.20 × 8 × ₹20 = ₹32.

Basic Wages = 8 × ₹20 = ₹160 (identical to Halsey — Basic Wages never depend on which scheme is used).

Total Earnings = 160 + 32 = ₹192. …

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