This is the system of wage payment under which the worker is paid according to the hours worked. This may be then projected over the daily, weekly and monthly basis.
Formula
Rate per hour x total hours worked
Example
Mr John is working in a towel manufacturing company. He is paid @ $ 2 per hour. He spent total 300 hours in the factory. Calculate total wage payment to Mr Jogn.
Answer
Total hours = 300 hours
Wage per hour = $ 2
Total wage payment = 300 x 2 = $ 600