# Halsey Plan

**Definition: **Under **Halsey Plan**, the standard time for the completion of a job is fixed and the rate per hour is then determined. If the time taken by a worker is more than the standard time, then he shall be paid according to the time rate, i.e. time taken multiplied by the rate per hour.

In Halsey plan, the **time wages are guaranteed** even if the output of a worker is below the standard. In case, the worker completes the works in less than the standard time, then he/she will be paid according to the actual time, i.e. time-rate plus the bonus calculated at a specified percentage of the saved time. Generally, the bonus percentage varies from **30-70 percent.** The usual bonus share paid to the worker is **50% of the time saved** **multiplied by** **the** **rate per hour (time-rate).**

This scheme can be further illustrated by the examples given below:

Standard Time: 8 hrs

Rate per Hour: Rs 2

**Case (1):** Time Taken = 8 hrs

Earnings = 8 x 2 = Rs 16

**Case (2):** Time Taken = 10 hrs

Earnings = 10 x 2 = Rs 20

**Case (3):** Time Taken= 6 hrs

Earnings:

Time wages = 6x 2 = Rs 12

Bonus = ½ x 2 x 2 = Rs Rs 2

Thus, in the above example, the worker’s total earnings are **Rs 14 **(time wages +bonus), if he has completed the work in 6 hrs, less than the standard time.