Emerson Efficiency Plan is a wage incentive system developed by Harrington Emerson which pays the day rate to the worker until the reaches the standard.

This plan was introduced by Mr. Hemington Emerson. Under this plan of incentive wages, the wages are paid at the standard rate and the amount of bonus paid to the workers depends on the individual efficiency of the workers.

• In Emerson's plan whenever the efficiency of a worker reaches 67% he gets a bonus.
• Bonus increases as the efficiency increases.
• When a worker's efficiency varies from 67% to 99% he receives bonuses at different percentages of basic wages.
• When the efficiency is more than 100% the worker's bonus is 20% of the basic wage.
• When the efficiency is more than 100% for every 1% increase in efficiency there is a 1% increase in bonus.
• The efficiency of a worker is determined on the basis of his monthly or weekly output.
• This procedure compensates for the decrease in workers' efficiency on some of the days.