Lesson 1: Income - Piecework

   Constructing Knowledge

Income earned per job is called piecework. The pay for each job is a unit rate. Cabinet makers, tree planters, and telemarketers are all paid full or partial piecework. Partial piecework means there may be a small hourly wage paid in addition to the piecework rate.


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Piecework
Income is paid according to the number of items or amount of work completed

Graduated Piecework

Another way that piecework can be paid is called graduated piecework. As more work is done, the unit rate increases.

For example, a student delivers flyers for a travel agency and is paid $0.20/flyer for the first 50 flyers delivered, and then $0.30/flyer for the next 50 flyers delivered.

The total pay earned is based on two levels of work. After delivering 50 flyers, the student will earn more per flyer.

Advantages of Piecework

  • You are paid more if you are more productive.
  • There may be flexible working conditions (as long as the job is getting done, you might be able to work at your convenience).

Disadvantages of Piecework

  • If you are not efficient at your job, you will not produce as much and you will earn less income.


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