Bedaux Plan

Definition: The Bedaux Plan is an incentive scheme in which the standard time for the completion of a job is fixed and the rate per hour is defined. Each minute of the standard time is called as point or B, such as in one hour there are 60 Bs.

Under Bedaux plan, every job has a standard number of Bs. If the worker completes the job in more than standard hours, then he is paid according to the time-rate, i.e. time taken is multiplied by the hourly rate. In case, the work is completed in hours less than the standard time; then the worker is entitled to the bonus in addition to the hourly rate. A bonus is equal to the 75% of the earned/saved points (in excess of 60 per hour) multiplied by one-sixth of the hourly rate.

Even if the worker does not reach the standard, then he is paid according to the time-rate. This scheme can be illustrated by examples given below:

Standard Time = 8 hrs
Rate per Hour = Re 1

Case (1): Actual Time = 10 hrs
Earnings = 10 X 1 = Rs 10

Case (2): Actual Time = 6 hrs
Time-wages =  6 X 1= Rs 6
Standard Bs = 60 X 8 = 480
Actual Bs =      60 X 6 = 360
Saved Bs =  120 (480-360)

Bedaux plan-final
Thus, total earnings = Rs 6 +1.50 = 7.50

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