Piece-rate pay is a compensation system in which employees are paid based on the number of units they produce or the number of tasks they complete. It is a method of payment commonly used in industries where output can be easily quantified, such as manufacturing, construction, or agriculture.
In a garment factory, employees are paid based on the number of garments they sew. The company sets a specific rate per garment, and the workers receive payment based on the number of garments they produce. For instance, if the piece rate is $2 per garment and an employee sews 100 garments in a week, they would earn $200 for that week.