On time rate you are paid for the number of hours worked. On piece rate you are paid for the quantity of goods you produce.

A piece rate worker is paid on the quantity they produce per hour. If they produce more, they will be paid more, based on the rate per finished item.

Piece-rate pay gives a payment for each item produced - it is therefore the easiest way for a business to ensure that employees are paid for the amount of work they do. Piece-rate pay is also sometimes referred to as a "payment by results system"

A piece rate worker is paid on the quantity they produce per hour. If they produce more, they will be paid more, based on the rate per finished item.

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