The Halsey Premium Plan In Cost Accounting.
Under Halsey premium Plan method, standard time for doing each job or operation as fixed and the worker is given wages for the actual time taken at the agreed rate per hour and a bonus equal to one half on the wages of time saved. The formula is calculated as:
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T * R + %(S-T) * R
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Here S is standard time, T is the Time taken, R is the labor rate per hour and % is the percentage of the wages of time saved to be given as bonus.
it reduces labor cost per unit and worker destruction between efficient and inefficient workers. Workers can easily calculate their wages because they are given actual time to perform.