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Accounting for labour

Remuneration systems

1.1 Annual salaries

Tend to be paid to management and non-production staff.

1.2 Hourly rates of pay

Many production and manual workers will be paid for every hour that they work.

1.3 Overtime

If normal hours are exceeded it may be possible to claim a higher rate of pay for the
extra hours worked.

1.4 Overtime payment

The total amount paid for the hours worked above the normal number of hours.

1.5 Overtime premium

The extra paid above the normal rate for the overtime hours. The
premium will be a direct labour cost if the time has been worked at a
specific request of a customer. If the extra hours are due to general
pressures, the premium will be indirect.

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