The time required to complete a task is established and a bonus is paid to the worker for every hour he saves from the established time required. This type of incentive plan is known as Halsey Premium Plan.

The Halsey Premium Plan:

• Halsey Premium incentive plans ensure a part of the swing to the worker and rest to the employer
• “Halsey premium plan is a simple combination of time and speed bases of payment.
• Under this plan, a minimum time wage is guaranteed to every worker.
• A standard time is fixed for the completion of a job.
• If a worker performs his job in less than the standard time, he is given a bonus.
• But there is no penalty for performing the job in more than the standard time fixed.
• The slow worker is paid the time wages and the efficient worker is paid some bonus in addition to the time wages.
• The bonus is in the proportion to the wages which he could have earned during the time saved.
• If a worker saves time, he gets 50% of wages for time saved (called a premium) in addition to normal wages.
• Workers oppose this scheme because workers have to share the bonus with employers.
• Workers get only a 50% bonus of the time saved.