A- Hourly pay is the rate for each day that is worked and is often calculated upon the no. of hours the labor has been given to the factory.
It is the calculation on which the payment is given to the worker based upon the wage rate and no. of hours worked. e.g. If the wage rate is $10 per hour and the worker has worked for 50 hours a week, he will get $500 as his weekly salary.
- Hourly pay is a method that is used to provide wages to either freelancers or non-permanent employee of such organisation. It is considered to be more cost effective method.
- It is also effective for the worker as he thinks that working for that extra hour will earn him more money as compared to monthly pay where salary is fixed irrespective for hours worked.
- It will also give motivation for the worker to work faster so that the work is also efficient and the job is done quicker resulting in increased output. The productive hours are calculated for the payment of salary.
Hence, the hourly pay is rate for the day for which the worker has worked and only productive hours are calculated for the purpose of payment. So, the correct option is A.
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