Piece-Rate Pay Calculator
Turn a piece rate and units produced into total pay and an effective hourly wage, and check it against the minimum wage.
How it works
Piece earnings = units × rate per unit · Effective hourly = piece earnings ÷ hours · Make-up pay = max(0, min wage × hours − piece earnings)
Piece-rate pay ties earnings to output rather than time. Under the FLSA, piece-rate workers must still earn at least the minimum wage for all hours worked, so if the pieces fall short the employer owes "make-up pay" to bridge the gap. Converting pieces to an effective hourly rate is the quickest way to see whether a rate is fair and legal.
Worked example
500 units at $0.50 each earn $250. Over 40 hours that is $6.25/hour — below a $7.25 minimum, which requires 40 × $7.25 = $290, so $40 of make-up pay is owed to reach $290.
Frequently asked questions
Do piece-rate workers get minimum wage?
Yes. The FLSA requires that piece-rate earnings, divided by hours worked, meet at least the applicable minimum wage. If they fall short, the employer must pay the difference as make-up pay.
How does overtime work for piece rate?
Overtime is still owed. One common method divides total piece earnings by total hours to get the regular rate, then pays an extra half of that rate for hours beyond 40. Some states, like California, require paying the full piece rate plus separate overtime.
What is a fair piece rate?
A fair rate lets an average worker comfortably clear minimum wage — and ideally a competitive hourly wage — at a sustainable pace. Time a typical run, divide the target hourly wage by units per hour, and set the rate from there.
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Educational payroll estimate, not tax, payroll or legal advice. Rules and rates vary by jurisdiction and employer — confirm with your payroll department.