What is piecework wage in SAP (PT - Personnel Time Management)?

SAP Term: piecework wage

• Component: PT

• Component Name: Personnel Time Management

• Description: A type of incentive wages in which the amount of remuneration depends on the work performed labor utilization rate by the employee. The most common form of piecework wages is time-based piecework. In this case, the remuneration for performance is proportional to the quantity produced. However, the quantity is not used to calculate wages. The remuneration is based on the fixed standard time rather than on the time required to produce the quantity.

Smart SAP Assistant

• Key Concepts: 
  Piecework wage is a type of wage system used in SAP Personnel Time Management (PT) that pays employees based on the number of pieces they produce. This system is used to incentivize employees to produce more, as they are paid for each piece they produce. Piecework wage is also known as piece rate or piecework pay. 
  
  How to use it: 
  In SAP PT, piecework wage is set up in the Wage Type Configuration. The wage type is configured with the wage type category “PW” and the wage type class “PW”. The wage type can then be assigned to an employee in the employee master data. The number of pieces produced by the employee is then entered into the system and the wages are calculated accordingly. 
  
  Tips & Tricks: 
  When setting up a piecework wage system, it is important to ensure that the number of pieces produced by each employee is accurately tracked and recorded in SAP PT. This will ensure that employees are paid correctly and that the system is fair for all employees. 
  
  Related Information: 
  Piecework wage systems are often used in manufacturing and production environments, where employees are producing a large number of pieces in a short amount of time. Other types of wage systems used in SAP PT include hourly wages, daily wages, and monthly salaries.