Day Rate

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Day Rate
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Day rate is an amount of money which an employee can earn during the work day in the company. The term per diem is used instead and it means the same. This system is used in companies which prefer to quote salaries daily, not hourly.

Employees salaries' are the part of human resources management. What's more, it is one of its most important parts. Every company has a specific remuneration policy. It meets the needs of both employers and employees. The satisfaction of both parties is very important (P. Horváthová 2011, p. 78.).

Who will receive the daily rates

Day rates are often used when employers are hired on a per-project basis or for doing seasonal work. Per diem payment is mainly used for workers classified for example as field operators, field specialists, top drive technicians, tool pushers, service supervisors and pipeline inspectors. It is commonly used in gas and oil industry.

Day rates are becoming commonplace among white-collar professionals. They generally work as freelancers. They work rather an occasional basis than as regular employees.

On the farm, daily rates will be granted to workers who have to do a specific task, for example harvesting, plant pruning, or planting. The daily rate is calculated on the basis of the preview of workers' productivity, size of the crew, time of harvesting, a quantity of collected cereals and earned dollars (F. Roka 1999, p. 1).


Workers hired in this system are entitled to low time-and-a-half if they work last over 40 hours per week. If the employer does not pay overtime, the epmloyee has the right to make a complaint to the firm that specializes in representing workers in overtime wage and legal claims. It is very important to defend employees' rights. It is worth noting that contractors usually have two-day rates- one for jobs that require highly specialized skills, and the second applied to more everyday and routine jobs.

Remuneration systems

Company incentive system should be adapted to the company's structure, its culture and the mission of the company. Currently, various remuneration systems are used. The most common system are:

  • temporary
  • time-bonus
  • piecework
  • commission
  • team
  • cafeteria.

The chosen form of remuneration should be agreed both by the employer and employee. The choice depends on several factors, like the position of the company, profile and industry. Heigh salaries should correspond to professional qualifications as well as the commitment to the work performed by each employee (Gasiorek M. 2018, p. 176.).

Employer for the employee

Nowadays the notion of employee market is discussed frequently. It means that jobseekers can choose from a variety of job offers. Companies which want to retain productive employees should give them motivation to work and good working conditions. A lot of companies offer lots of benefits to their workers. It may be for example multisport cards, private medical care, business phone, training and courses, flexible working time and others. Many companies strive for specialized employees with experience in work. Other organizations focus on young and promising workforce.


Author: Paulina Byrska