can contribute greatly toward efficient.low cost operations. It is an important cost factor requiring constant measurement.   Labor cost represent the human contribution to production. .control & analysis.loyal to the company and its policies. A cooperative and enthusiastic labor force.

and 4) Appropriate payment for labor.labor time 3) Labor performance reports. Effective labor cost control is achieved through 1) Production Planning 2) Use of labor budgets. .

. PRODUCTIVITY Productivity is the amount of goods and services a worker produces or could be described as the efficiency with which resources are converted into commodities and/or services.

. 4) Working environment There must be some standard to measure expectation with accomplishments.  Productivity can be improved by 1) Better production process 2) Use of modern machines or maintenance of existing machine. 3) Proper reward to workers.

Cartoning etc.coating. .This recording is done for group of workers assigned a particular supervisor.blistering and packaging.LABOR PERFORMANCE REPORT     See page #386.387 These differs from company to company. In a Pharmaceutical company supervisors keep record of hours spent at each process like Mixing. Time keeping/recording has become now very easy due to computerization.Labeling.tableting.Filtering.and in case of tables section production time spent at granulling.

25 per hr total std cost 28000---.Measuring productivity and efficiency :excercise Standard hrs 4000 .25 *4400 =1100 UF Labour rate varience: 4000-4400*7 =2800UF Total varience Rs 3900 (1100+2800) . Actual hrs 4400 Standard rate 7 perhr .actual cost 31900---------------------------------------------Labour rate varience: 7-7.act rate7.

INCENTIVE WAGES PLANS Incentive wages plan are incentive schemes to induce workers to produce more     (see page #400 to 403 for following) 1) Straight Piecework Plan 2) 100 percent bonus plan 3) Group bonus .

PENSION PLANlearning objective is to see how provision of pension cost is worked out Please solve Exercise # 6 Page 439 .

3000/ ie Rs 150pm PROFESSIONAL TAX @Rs. .150 per annum for each tax payers.5000/-ie Rs 350 pm EOBI 5% On basic plus cola maximum on Rs.VARIOUS PAYMENT BORN BY EMPLOYER IN PAKISTAN     SESSI 7% On basic plus cola maximum on Rs.

WPPF 5% of profit prior to taxation  WWF 2% of taxable income. EDUCATION CESS RS100per worker per year for workers getting Rs 3000 COMPULSORY GROUP INSURANCE Rs 200.000 insurance cover for all employees by employer  .

BONUS 10C One months wages of the workmen subject to maximum of 30% of profit. LEAVE ENCASHMENT as per policy. not compulsory  .  GRATUITY /PF Gratuity is not payable during the period when a PF has been in existence to which the workmen is a contributor.

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