The standards established
This is the standard wage scheme used by small business, basically wage will be set per hour, and any extra work done above the set time will be paid at an overtime rate. E. g. minimum wage per hour could be i?? 5 and overtime rate could be 7. 50. Salary: flat rate: It is fixed rate which is paid weekly/monthly, based on a set number of hours. This makes it easy to calculate and administer but main drawback of this scheme is that harder working employees will be paid the same as employees who are not working very hard.