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Illustrations · Q8

Q.A worker is given a Time Allowed of 8 hours for a job at a Time Rate of ₹18 per hour, but actually takes 9 hours to complete it. Calculate the worker's Total Earnings under

(a) the Halsey Scheme and
(b) the Rowan Scheme.
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Time Saved = Time Allowed − Time Taken = 8 − 9 = −1 hour, which is NEGATIVE — but a Premium Bonus Scheme never treats a negative time-saved figure as a penalty. By convention, whenever Time Taken equals or exceeds Time Allowed, Time Saved is simply taken as Nil, and no bonus is paid under either scheme; the worker is not penalised for taking longer than standard, only denied the extra bonus.

  1. Halsey Scheme: Bonus = 50% × Nil × ₹18 = ₹0. Total Earnings = Time Taken × Time Rate = 9 × ₹18 = ₹162.
  2. Rowan Scheme: Bonus = (Nil ÷ 8) × 9 × ₹18 = ₹0. Total Earnings = 9 × ₹18 = ₹162. …

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