Under this system of work payment of wages depends upon the output given. Workers receive different amounts of earnings according to the quantity of work they execute. In construction industry, a group or gang of labour is employed on work on output basis. The leader of the gang is contracted to take up the work. It is his responsibility to get the job completed satisfactorily on the site. In this type, the nature of the work must be such that it can be measured in terms of some norms in order to calculate the wages.

In the beginning, the rates are fixed according to the units of work. The work is measured and payment is made to the gang leader. The gang leader later on makes the payment to individual worker under his control. This method gives an incentive to the labour to work more and earn more. There is, however, a risk of getting inferior quality of work in the haste of finishing the work for earning more.

Gang employment method is useful for certain items of work like casting R.C.C. slab, excavation, concreting, filling, etc. Following are the important features of this system of employment :

·        This system is applicable when a large quantity of output is expected.

·        This system provides incentive to workers to work more.

·        It is useful when quality of work is of secondary important.

·        Workers become careless.

·        The output can be easily measured or counted.

·        In case of interruption, workers are put to loss.

·      When work can be easily measured, payment by this method is preferred by the employer.

·        There is possibility of wastage of material.


Advantages

·        It lowers the per unit cost of work.

·        Less supervision is required.

·        The workers are not paid for idle-time.

·    Method of calculating wages is simple and it is easily understood by the workers.

·        The workers are paid only when the work passes inspection.


Disadvantages

·        It may increase the wastage of material.

·        Accidents are quite likely due to hasty work.

·        Worker’s health is likely to deteriorate because of overwork.


·        The quality of work cannot be maintained to the desire level.