Given the above considerations, the three important methods of wage payment may be as

follows:-

 Time Rate System: It is one of the simplest and oldest methods of wage payment. Under
it,remuneration is based upon the amount of time spent on the work. The wage rate
increases with an increase in hours of work done and vice-versa. Here wages are calculated
on hourly,daily,weekly,monthly or yearly basis and are usually prescribed in advance.

 Piece Rate System:- This method takes into consideration the efficiency of the workers.
Under it,wages are based upon the amount of work done by the workers. The wage rate
rises or falls with increase or decrease in the output of the worker. Here wage rates are
prescribed per piece.

 Incentive Wage Plan:- It is the co-ordinated form of both the above mentioned methods
for wage payment. Under it, the workers get additional wages based upon their efficiency in
addition to the minimum guaranteed wages. Incentive wage rate rises or falls with increase
or decrease in the quantity of production.