Hourly employee

Meaning & Definition

The Hourly Employee refers to the employee who gets paid according to the number of hours worked, not as a monthly salary. The calculation of their salary takes into account the multiplication of the hourly wage by the number of hours worked.

Important Features of an Hourly Employee

• Offers the flexibility of managing the workforce.
• Helps reduce labor costs according to actual hours worked.
• Can be used in the shift industry.
• Make sure that workers get paid for their work.
• Good for part-time employees.

Compliance & Policy Considerations 

Hourly workers should be compensated according to relevant legislation on wages. Some significant legislation includes:

• The Minimum Wages Act, 1948, guarantees that workers receive at least the minimum wage rate for an hour

Employers are also required to keep track of the time spent working and calculate salaries as per labor law requirements.