Definition

Piece rate

What does it mean?

Piece-rate pay (akkord) is a form of remuneration where your pay depends on how much work you produce — not how long you spend. The more you produce, the more you earn. The model is used mainly in construction, manufacturing and parts of agriculture and transport.

There are two typical variants: pure piece rate (entire pay tied to output) and piece-rate bonus (base hourly wage plus a bonus per unit produced). Collective agreements often set minimum rates and safety rules.

Piece-rate work can mean higher earnings for efficient workers but also income uncertainty if production slows. Employers must still comply with working time regulations and provide a safe working environment.

If you consider piece-rate work, clarify how rates are calculated, what counts as a completed unit, and whether there is a guaranteed minimum hourly pay.

Magnus Villumsen, Content Creator at Arbejd.com
Defined by Arbejd.com

Magnus Villumsen

Content Creator
Last updated
March 7, 2026