Remuneration of labour based on number of hours worked is known as

Step 1: Analyze the question The question asks for the term describing payment to labour that is calculated on the number of hours worked.

Step 2: Explain the concept There are two main methods of paying labour:

• Time-rate: payment is based on the length of time worked (per hour, day, week, or month).
• Piece-rate: payment is based on the quantity of output produced.

Other related terms:

• Fees: payment for professional services, such as a lawyer's or doctor's fee.
• Commission: a percentage of sales made, common with sales agents.
• Salary: a fixed payment, usually monthly or annual, regardless of exact hours worked.
• Wages: payment to workers, often calculated hourly, daily, or weekly. Wages are a general term for labour income, and they can be paid on a time basis or a piece basis.

Step 3: Work through the options

• A. Fees: for professional services, not tied to hours worked. ✗
• B. Commission: tied to sales, not hours. ✗
• C. Time-rates: the method of remuneration based directly on time (hours) worked. ✓
• D. Salary: fixed periodic pay, not hours-based. ✗
• E. Wages: a possible distractor. Wages are often paid hourly, but the term itself describes the payment, not the basis of calculation. The question asks for the system of remuneration "based on number of hours worked", which is exactly what "time-rate" means. ✗

Step 4: Answer The correct option is C. time-rates.

Exam tip: Remember the pairing time-rate = hours worked and piece-rate = units produced. When a question mentions the basis of payment, think of these two terms first. "Wages" and "salary" describe the payment itself, not how it is calculated.