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Time-based remuneration

Time-based remuneration pays employees for time worked or for a contracted period, rather than directly per unit produced. It may use hourly, daily, weekly or monthly rates, with overtime and other adjustments according to the terms. It provides income stability but does not by itself reward greater output. Costing needs time records and output information to distinguish pay earned from productive activity and to monitor service quality and efficiency.

Worked example

An employee works 35 normal hours at $16 per hour, giving $560 gross basic earnings before overtime, bonuses or deductions.

Common mistake

Pay for time is not proof of time spent on a particular job, and a salary does not make all labour indirect.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA MA Direct September 2026–June 2027
FIA FMA Direct September 2026–June 2027