Rowan Premium Plan

This plan is similar to that of the Halsey Premium Plan. The only difference is in regard to the determination of the premium. Unlike a fixed percentage in the case of the Halsey plan, it considers premium on the basis of the proportion in which the time saved bears to the standard time.

• Under the Rowan plan, the premium is calculated on a percentage of wages for the time worked and not for the time saved. This gives more bonus to the workers.
• Unlike a fixed percentage in the case of the Halsey plan, it considers premium on the basis of the proportion in which the time saved bears to the standard time.
• As per this plan, there is a guarantee of minimum wage with a time rate.
• But the worker has the right to get the bonus on the basis of his time saved.
• Bonus gradually increases with an increase in percent time saved, and reaches the maximum at 50% time-saved and becomes zero when time saved is 100%.
• Thus workers get benefited when the time saved is 50% only.

The bonus can be calculated by using the following formula.

E = (T × R + S − T)/(S × T × R)

where

E = Total Earning

T= Actual Time

S =  Standard Time

R= Rate per Hour