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Different Types of Allowances

There are several types of allowances that can be added to standard work times: 1. Relaxation allowances include personal needs allowances of 5% for men and 7% for women to account for activities like drinking water and washing hands, as well as fatigue allowances of around 4% of basic time. 2. Variable allowances add more time for workers performing jobs in poor environmental conditions or facing added stress. 3. Interference allowances compensate workers who operate multiple machines that may stop simultaneously, with the amount depending on the number of machines. 4. Contingency allowances of up to 5% of time cover minor delays and extra work that are difficult to precisely measure

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907 views9 pages

Different Types of Allowances

There are several types of allowances that can be added to standard work times: 1. Relaxation allowances include personal needs allowances of 5% for men and 7% for women to account for activities like drinking water and washing hands, as well as fatigue allowances of around 4% of basic time. 2. Variable allowances add more time for workers performing jobs in poor environmental conditions or facing added stress. 3. Interference allowances compensate workers who operate multiple machines that may stop simultaneously, with the amount depending on the number of machines. 4. Contingency allowances of up to 5% of time cover minor delays and extra work that are difficult to precisely measure

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Esubalew gebrie
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Different Types of Allowances

Compiled By: Esubalew Gebrie


Addis Ababa, Ethiopia
November ,2013 E.C
Different Types of Allowances
Allowance is a time which is added to the normal
time for recovery from fatigue and for relaxation.
The allowances are categorized as:
1. Relaxation allowance
2. Variable allowance
3. Interference allowance
4.  Contingency allowance and
5. Policy allowance
Relaxation allowance
A. Personal needs allowance
 Given to personal needs like drinking water, smoking,
washing hands.
 Women require longer personal allowance than men.
A fair personal allowance is 5% for men, and 7% for
women.
B. Fatigue
 Given to compensate for energy expended during
working.
 A common figure considered as allowance is 4% of the
basic time.
Variable allowance

 Is allowed to an operator who is working under poor


environmental conditions that cannot be improved,
added stress and strain in performing the job.
 The variable fatigue allowance is added to the fixed
allowance to an operator who is engaged on medium
and heavy work and working under abnormal
conditions.
 The amount of variable fatigue allowance
Interference allowance

 It is an allowance of time included into the work


content of the job to compensate the operator for the
unavoidable loss of production due to simultaneous
stoppage of two or more machines being operated by
him.
 This allowance is applicable for machine or process
controlled jobs.
 Interference allowance varies in proportion to number
of machines assigned to the operator.
 The interference of the machine increases the work
content.
Contingency allowance
 A contingency allowance is a small allowance of time
which may be included in a standard time to meet
legitimate and expected items of work or delays.
 The precise measurement of which is uneconomical
because of their infrequent or irregular occurrence.
 This allowance provides for small unavoidable delays
as well as for occasional minor extra work:
Cont.…
Some of the examples calling for contingency allowance
are:
 Tool breakage involving removal of tool from the
holder and all other activities to insert new tool into
the tool holder.
 Power failures of small duration.

 Obtaining the necessary tools and gauges from central


tool store.
 Contingency allowance should not exceed 5%.
Policy allowance
 Policy allowances are not the genuine part of the time
study and should be used with utmost care and only in
clearly defined circumstances. 
 The usual reason for making the policy allowance is to
line up standard times with requirements of wage
agreement between employers and trade unions.
 The policy allowance is an increment, other than bonus
increment, applied to a standard time (or to some
constituent part of it, e.g., work content) to provide a
satisfactory level of earnings for a specified level of
performance under exceptional circumstances.
 Policy allowances are sometimes made as imperfect
functioning of a division or part of a plant.
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