The main advantages of Time wage system are given below:
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(i) It gives the workers a sense of security which is so important for sustaining their interest in work. The remuneration under this system is certain and the worker has not to suffer a cut even when his efficiency is temporarily impaired by an injury or sickness.
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(ii) In those lines of production, where skill of the worker and quality of product matter more than speed or quantity of output, workers can devote themselves to their jobs with greater care and attention if they are assured of a fixed time rate.
(iii) It follows from above that the workers will avoid over speeding and the consequent damage to equipment if they are paid a fixed time-rate independent of production.
(iv) The calculation of wages is simplified by this system. The cost of operating a time wage scheme is almost negligible because the only record that has to be maintained is that of the time for which a worker has been at his work.
(v) In those cases where the production is not standardized, the productivity of a worker cannot be accurately measured. In such instances, time wage is the only just method of wage payment.
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(vi) In modern factories, production is carried on a mass scale, usually on the assembly-line. Under such a set-up, a particular worker cannot perform his work faster than the other members of his group. If a worker performs his part of the job more quickly than others, he may have to be idle till he receives more work from the workers preceding him on the assembly- line.
Ultimately, therefore, his output will be the same as that of the group as a whole. The wages of the workers in such manufacturing organisations are paid on time basis rather than on piece basis.
(vii) Trade unions accept this system of wage payment quite willingly because it does not create any distinctions in the ranks of workers on account of differences in efficiency.