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PIECE-WAGES
Economic Manuscripts: Capital Vol. I - Chapter Twenty-One
Karl Marx. Capital Volume One
Chapter Twenty-One: Piece-Wages
Wages by the piece are nothing else than a converted
form of wages by time, just as wages by time are a converted form of the
value or price of labour-power.
In piece wages it seems at first sight as if the use-value bought
from the labourer was, not the function of his labour-power, living labour,
but labour already realized in the product, and as if the price of this
labour was determined, not as with time-wages, by the fraction
daily value of labour-power
the working day of a given number of hours
but by the capacity for work of the producer.
The confidence that trusts in this appearance ought to receive
a first severe shock from the fact that both forms of wages exist side
by side, simultaneously, in the same branches of industry; e.g.,
“the compositors of London, as a general rule, work by the piece, time-work being the exception,
while those in the country work by the day, the exception being work by
the piece. The shipwrights of the port of London work by the job or piece,
while those of all other parts work by the day.”
In the same saddlery shops of London, often for the same work,
piece wages are paid to the French, time-wages to the English. In the regular
factories in which throughout piece wages predominate, particular kinds
of work are unsuitable to this form of wage, and are therefore paid by
time. But it is, moreover, self-evident that the
difference of form in the payment of wages alters in no way their essential
nature, although the one form may be more favorable to the development
of capitalist production than the other.
Let the ordinary working-day contain 12 hours of which 6 are paid,
6 unpaid. Let its value-product be 6 shillings, that of one hour’s labour
therefore 6d. Let us suppose that, as the result of experience, a labourer
who works with the average amount of intensity and skill, who, therefore,
gives in fact only the time socially necessary to the production of an
article, supplies in 12 hours 24 pieces, either distinct products or measurable
parts of a continuous whole. Then the value of these 24 pieces, after.
subtraction of the portion of constant capital contained in them, is 6
shillings, and the value of a single piece 3d. The labourer receives 1
½d. per piece, and thus earns in 12 hours 3 shillings. Just as, with
time-wages, it does not matter whether we assume that the labourer works
6 hours for himself and 6 hours for the capitalist, or half of every hour
for himself, and the other half for the capitalist, so here it does not
matter whether we say that each individual piece is half paid, and half
unpaid for, or that the price of 12 pieces is the equivalent only of the
value of the labour-power, whilst in the other 12 pieces surplus-value
is incorporated.
The form of piece wages is just as irrational as that of time-wages.
Whilst in our example two pieces of a commodity, after subtraction of the
value of the means of production consumed in them, are worth 6d. as being
the product of one hour, the labourer receives for them a price of 3d.
Piece wages do not, in fact, distinctly express any relation of value.
It is not, therefore, a question of measuring the value of the piece by
the working-time incorporated in it, but on the contrary, of measuring
the working-time the labourer has expended by the number of pieces he has
produced. In time-wages, the labour is measured by its immediate duration;
in piece wages, by the quantity of products in which the labour has embodied
itself during a given time. The price of labour time itself is finally determined by the equation: value of a day’s labour = daily value of labour-power. Piece-wage is, therefore, only a modified
form of time-wage.
Let us now consider a little more closely the characteristic peculiarities
of piece wages.
The quality of the labour is here controlled by the work itself,
which must be of average perfection if the piece-price is to be paid in
full. Piece wages become, from this point of view, the most fruitful source
of reductions of wages and capitalistic cheating.
They furnish to the capitalist an exact measure for the intensity
of labour. Only the working-time which is embodied in a quantum of commodities
determined beforehand, and experimentally fixed, counts as socially necessary
working-time, and is paid as such. In the larger workshops of the London
tailors, therefore, a certain piece of work, a waistcoat, e.g., is called
an hour, or half an hour, the hour at 6d. By practice it is known how much
is the average product of one hour. With new fashions, repairs, &c.,
a contest arises between master and labourer as to whether a particular
piece of work is one hour, and so on, until here also experience decides.
Similarly in the London furniture workshops, &c. If the labourer does
not possess the average capacity, if he cannot in consequence supply a
certain minimum of work per day, he is dismissed.
Since the quality and intensity of the work are here controlled
by the form of wage itself, superintendence of labour becomes in great
part superfluous. Piece wages therefore lay the foundation of the modern
“domestic labour,” described above, as well as of a hierarchically organized
system of exploitation and oppression. The latter has two fundamental forms.
On the one hand, piece wages facilitate the interposition of parasites
between the capitalist and the wage-labourer, the “sub-letting of labour.”
The gain of these middlemen comes entirely from the difference between
the labour-price which the capitalist pays, and the part of that price
which they actually allow to reach the labourer.
In England this system is characteristically called the “sweating system.”
On the other hand, piece-wage allows the capitalist to make a contract
for so much per piece with the head labourer — in manufactures with the chief
of some group, in mines with the extractor of the coal, in the factory
with the actual machine-worker — at a price for which the head labourer
himself undertakes the enlisting and payment of his assistant work people.
The exploitation of the labourer by capital is here effected through the
exploitation of the labourer by the labourer.
Given piece-wage, it is naturally the personal interest of the
labourer to strain his labour-power as intensely as possible; this enables
the capitalist to raise more easily the normal degree of intensity of labour.
It is moreover now the personal interest of the labourer to lengthen the working-day, since with it his daily or weekly wages rise.
This gradually brings on a reaction like that already described in time-wages, without reckoning that the prolongation of the
working-day, even if the piece wage remains constant, includes of necessity
a fall in the price of the labour.
In time-wages, with few exceptions, the same wage holds for the
same kind of work, whilst in piece wages, though the price of the working
time is measured by a certain quantity of product, the day’s or week’s
wage will vary with the individual differences of the labourers, of whom
one supplies in a given time the minimum of product only, another the average,
a third more than the average. With regard to actual receipts there is,
therefore, great variety according to the different skill, strength, energy,
staying-power, &c., of the individual labourers. Of course this does not alter the general relations between capital and wage-labour. First, the individual differences balance one another in the
workshop as a whole, which thus supplies in a given working-time the average
product, and the total wages paid will be the average wages of that particular
branch of industry. Second, the proportion between wages and surplus-value
remains unaltered, since the mass of surplus labour supplied by each particular
labourer corresponds with the wage received by him. But the wider scope
that piece-wage gives to individuality tends to develop on the one hand
that individuality, and with it the sense of liberty, independence, and
self-control of the labourers, and on the other, their competition one
with another. Piece-work has, therefore, a tendency, while raising individual wages above the average, to lower this average itself. But where a particular
rate of piece-wage has for a long time been fixed by tradition, and its
lowering, therefore, presented especial difficulties, the masters, in such
exceptional cases, sometimes had recourse to its compulsory transformation
into time-wages. Hence, e.g., in 1860 a great strike among the ribbon-weavers
of Coventry. Piece-wage is finally one of the chief supports of the hour-system described in the preceding chapter.
From what has been shown so far, it follows that piece-wage is
the form of wages most in harmony with the capitalist mode of production.
Although by no means new — it figures side by side with time-wages officially
in the French and English labour statutes of the 14th century — it only
conquers a larger field for action during the period of manufacture, properly
so-called. In the stormy youth of modern industry, especially from 1797
to 1815, it served as a lever for the lengthening of the working-day, and
the lowering of wages. Very important materials for the fluctuation of
wages during that period are to be found in the Blue books: “Report and
Evidence from the Select Committee on Petitions respecting the Corn Laws”
(Parliamentary Session of 1813-14), and “Report from the Lords’ Committee,
on the State of the Growth, Commerce, and Consumption of Grain, and all
Laws relating thereto” (Session of 1814-15). Here we find documentary evidence
of the constant lowering of the price of labour from the beginning of the
anti-Jacobin War. In the weaving industry, e.g., piece wages had fallen
so low that, in spite of the very great lengthening of the working-day,
the daily wages were then lower than before.
“The real earnings of the
cotton weaver are now far less than they were; his superiority over the
common labourer, which at first was very great, has now almost entirely
ceased. Indeed... the difference in the wages of skillful and common labour
is far less now than at any former period.”
How little the increased intensity and extension of labour through piece wages
benefited the agricultural proletariat, the following passage borrowed
from a work on the side of the landlords and farmers shows:
“By far the
greater part of agricultural operations is done by people who are hired
for the day or on piece-work. Their weekly wages are about 12s., and although it may be assumed that a man earns on piece-work under the greater stimulus
to labour, 1s. or perhaps 2s. more than on weekly wages, yet it is found,
on calculating his total income, that his loss of employment, during the
year, outweighs this gain...Further, it will generally be found that the
wages of these men bear a certain proportion to the price of the necessary
means of subsistence, so that a man with two children is able to bring
up his family without recourse to parish relief.”
Malthus at that time remarked with reference to the facts published by Parliament:
“I confess that I see, with misgiving, the great extension
of the practice of piece-wage. Really hard work during 12 or 14 hours of
the day, or for any longer time, is too much for any human being.”
In the workshops under the Factory Acts, piece wages become the
general rule, because capital can there only increase the efficacy of the
working-day by intensifying labour.
With the changing productiveness of labour the same quantum of
product represents a varying working-time. Therefore, piece-wage also varies,
for it is the money expression of a determined working-time. In our example
above, 24 pieces were produced in 12 hours, whilst the value of the product
of the 12 hours was 6s., the daily value of the labour-power 3s., the price
of the labour-hour 3d., and the wage for one piece ½d. In one piece half-an-hour’s
labour was absorbed. If the same working-day now supplies, in consequence
of the doubled productiveness of labour, 48 pieces instead of 24, and all
other circumstances remain unchanged, then the piece-wage falls from 1
½d. to 3/4d., as every piece now only represents 1/4, instead of ½
of a working-hour. 24 by 1½d. = 3s., and in like manner 48 by 3/4d.
= 3s. In other words, piece-wage is lowered in the same proportion as the
number of the pieces produced in the same time rises, and, therefore, as the working time spent on the same piece falls. This change in piece-wage, so far purely nominal, leads to constant battles
between capitalist and labour. Either because the capitalist uses it as
a pretext for actually lowering the price of labour, or because increased
productive power of labour is accompanied by an increased intensity of
the same. Or because the labourer takes seriously the appearance of piece wages
(viz., that his product is paid for, and not his labour-power) and therefore
revolts against a lowering of wages, unaccompanied by a lowering in the
selling price of the commodity.
“The operatives...carefully watch the price
of the raw material and the price of manufactured goods, and are thus enabled
to form an accurate estimate of their master’s profits.”
The capitalist rightly knocks on the head such pretensions as
gross errors as to the nature of wage-labour. He cries out against this usurping attempt to lay taxes on the advance of
industry, and declares roundly that the productiveness of labour does not
concern the labourer at all.
Footnotes
1. “The system of piece-work illustrates an epoch in the history of the working-man; it is halfway between the position
of the mere day-labourer depending upon the will of the capitalist and
the co-operative artisan, who in the not distant future promises to combine
the artisan and the capitalist in his own person. Piece-workers are in
fact their own masters, even whilst working upon the capital of the employer.”
(John Watts: “Trade Societies and Strikes, Machinery and Co-operative Societies.”
Manchester, 1865, pp. 52, 53.) I quote this little work because it is a
very sink of all long-ago-rotten, apologetic commonplaces. This same Mr.
Watts earlier traded in Owenism and published in 1842 another pamphlet:
“Facts and Fictions of Political Economists,” in which among other things
he declares that “property is robbery.” That was long ago.
2. T. J. Dunning: “Trades’ Unions and Strikes,”
Lond., 1860, p. 22.
3. How the existence, side by side and simultaneously, of these two forms of wage favors the masters’ cheating:
“A factory employs 400 people, the half of which work by the piece, and
have a direct interest in working longer hours. The other 200 are paid
by the day, work equally long with the others, and get no more money for
their over-time.... The work of these 200 people for half an hour a day
is equal to one person’s work for 50 hours, or 5/6’s of one person’s labour
in a week, and is a positive gain to the employer.” (“Reports of Insp.
of Fact., 31st Oct., 1860,” p. 9.) “Over-working to a very considerable
extent still prevails; and, in most instances, with that security against
detection and punishment which the law itself affords. I have in many former
reports shown ... the injury to workpeople who are not employed on piece-work,
but receive weekly wages.” (Leonard Horner in “Reports of Insp. of Fact.,”
30th April, 1859, pp. 8, 9.)
4. “Wages can be measured in two ways: either by the duration of the labour, or by its product.” (“Abrégé é1émentaire
des principes de l’économie politique.” Paris, 1796, p. 32.) The author
of this anonymous work: G. Garnier.
5. “So much weight of cotton is delivered to him” (the spinner), “and he has to return by a certain time, in lieu
of it, a given weight of twist or yarn, of a certain degree of fineness,
and he is paid so much per pound for all that he so returns. If his work
is defective in quality, the penalty falls on him, if less in quantity
than the minimum fixed for a given time, he is dismissed and an abler operative
procured.” (Ure, l.c., p. 317.)
6. “It is when work passes through several hands, each of which is to take its share of profits, while only the last
does the work, that the pay which reaches the workwoman is miserably disproportioned.”
(“Child. Emp. Comm. II Report,” p. 1xx., n. 424.)
7. Even Watts, the apologetic, remarks: “It would be a great improvement to the system of piece-work, if all the
men employed on a job were partners in the contract, each according to
his abilities, instead of one man being interested in over-working his
fellows for his own benefit.” (l.c., p. 53.) On the vileness of this system,
cf. “Child. Emp. Comm., Rep. III.,” p. 66, n. 22, p. 11, n. 124, p. xi,
n. 13, 53, 59, &c.
8. This spontaneous result is often artificially helped along, e.g., in the Engineering Trade of London, a customary trick
is “the selecting of a man who possesses superior physical strength and
quickness, as the principal of several workmen, and paying him an additional
rate, by the quarter or otherwise, with the understanding that he is to
exert himself to the utmost to induce the others, who are only paid the
ordinary wages, to keep up to him ... without any comment this will go
far to explain many of the complaints of stinting the action, superior
skill, and working-power, made by the employers against the men” (in Trades-Unions.
Dunning, l.c., pp. 22, 23). As the author is himself a labourer and secretary
of a Trades’ Union, this might be taken for exaggeration. But the reader
may compare the “highly respectable” “Cyclopedia of Agriculture” of J.
C. Morton, Art., the article “Labourer,” where this method is recommended
to the farmers as an approved one.
9. “All those who are paid by piece-work ... profit by the transgression of the legal limits of work. This observation
as to the willingness to work over-time is especially applicable to the
women employed as weavers and reelers.” (“Rept. of Insp. of Fact., 30th
April, 1858,” p. 9.) “This system” (piece-work), “so advantageous to the
employer ... tends directly to encourage the young potter greatly to over-work
himself during the four or five years during which he is employed in the
piece-work system, but at low wages.... This is ... another great cause
to which the bad constitutions of the potters are to be attributed.” (“Child.
Empl. Comm. 1. Rept.,” p. xiii.)
10. “Where the work in any trade is paid for by the piece at so much per job ... wages may very materially
differ in amount.... But in work by the day there is generally an uniform
rate ... recognized by both employer and employed as the standard of wages
for the general run of workmen in the trade.” (Dunning, l.c., p. 17.)
11. “The work of the journeyman-artisans
will be ruled by the day or by the piece. These master-artisans know about
how much work a journeyman-artisan can do per day in each craft, and often
pay them in proportion to the work which they do; the journey men, therefore,
work as much as they can, in their own interest, without any further inspection.”
(Cantillon, “Essai sur la Nature du Commerce en général,” Amst. Ed., 1756,
pp. 185 and 202. The first edition appeared in 1755.) Cantillon, from whom
Quesnay, Sir James Steuart & A. Smith have largely drawn, already here
represents piece-wage as simply a modified form of time-wage. The French
edition of Cantillon professes in its title to be a translation from the
English, but the English edition: “The Analysis of Trade, Commerce, &c.,”
by Philip Cantillon, late of the city of London, Merchant, is not only
of later date (1759), but proves by its contents that it is a later and
revised edition: e.g., in the French edition, Hume is not yet mentioned,
whilst in the English, on the other hand, Petty hardly figures any longer.
The English edition is theoretically less important, but it contains numerous
details referring specifically to English commerce, bullion trade, &c.,
that are wanting in the French text. The words on the title-page of the
English edition, according to which the work is “taken chiefly from the
manuscript of a very ingenious gentleman, deceased, and adapted, &c.,”
seem, therefore, a pure fiction, very customary at that time.
12. “How often have we seen, in some workshops, many more workers recruited than the work actually called for?
On many occasions, workers are recruited in anticipation of future work,
which may never materialize. Because they are paid by piece wages, it is
said that no risk is incurred, since any loss of time will be charged against
the unemployed.” (H. Gregoir: “Les Typographes devant le Tribunal correctionnel
de Bruxelles,” Brusseles, 1865, p. 9.)
13. “Remarks on the Commercial Policy of Great Britain,” London, 1815.
14. “A Defense of the Landowners and Farmers of Great Britain,” 1814, pp. 4, 5.
15. Malthus, “Inquiry into the Nature and Progress of Rent,” Lond., 1815.
16. “Those who are paid by piece-work ... constitute probably four-fifths of the workers in the factories.” “Report
of Insp. of Fact.,” 30th April, 1858.
17. “The productive power of his spinning-machine is accurately measured, and the rate of pay for work done with it decreases with, though not as, the increase of its productive power.” (Ure, l.c., p. 317.) This last apologetic phrase Ure himself again cancels. The lengthening
of the mule causes some increase of labour, he admits. The labour does
therefore not diminish in the same ratio as its productivity increases.
Further: “By this increase the productive power of the machine will be
augmented one-fifth. When this event happens the spinner will not be paid
at the same rate for work done as he was before, but as that rate will
not be diminished in the ratio of one-fifth, the improvement will augment
his money earnings for any given number of hours’ work,” but “the foregoing
statement requires a certain modification.... The spinner has to pay something
additional for juvenile aid out of his additional sixpence, accompanied
by displacing a portion of adults” (l.c., p. 321), which has in no way
a tendency to raise wages.
18. H. Fawcett: “The Economic Position of the British labourer.” Cambridge and London, 1865, p. 178.
19. In the “London Standard” of October 26, 1861, there is a report of proceedings of the firm of John Bright &
Co., before the Rochdale magistrates “to prosecute for intimidation the
agents of the Carpet Weavers Trades’ Union. Bright’s partners had introduced
new machinery which would turn out 240 yards of carpet in the time and
with the labour (!) previously required to produce 160 yards. The workmen
had no claim whatever to share in the profits made by the investment of
their employer’s capital in mechanical improvements. Accordingly, Messrs.
Bright proposed to lower the rate of pay from 1½d. per yard to 1d.,
leaving the earnings of the men exactly the same as before for the same
labour. But there was a nominal reduction, of which the operatives, it
is asserted, had not fair warning beforehand.”
20. “Trades’ Unions, in their desire to maintain wages, endeavor to share in the benefits of improved machinery.”
(Quelle horreur!) “... the demanding higher wages, because labour is abbreviated,
is in other words the endeavor to establish a duty on mechanical improvements.”
(“On Combination of Trades,” new ed., London, 1834, p. 42.)
Transcribed by Bill McDorman
Html Markup by Stephen Baird (1999)
Next: Chapter Twenty-Two: National Differences of Wages
Capital Volume One- Index
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Let's Analyse the Pattern
Systems that appear to give individual control while actually increasing exploitation through self-supervision and competition.
Why This Matters
Connect literature to life
This chapter teaches how to see through compensation schemes that promise more control while delivering less security.
Practice This Today
This week, notice when job offers emphasize 'unlimited earning potential' or 'be your own boss'—calculate the actual guaranteed hourly minimum and ask who bears the risks.
Now let's explore the literary elements.
Key Quotes & Analysis
"Wages by the piece are nothing else than a converted form of wages by time, just as wages by time are a converted form of the value or price of labour-power."
Context: Opening the chapter to establish his main argument
Marx immediately cuts through the illusion that piece wages are fundamentally different. He's showing that both systems serve the same purpose—extracting surplus value from workers—just with different packaging.
In Today's Words:
Getting paid per task instead of per hour doesn't change the basic deal—you're still selling yourself to make someone else rich.
"The confidence that trusts in this appearance ought to receive a first severe shock from the fact that both forms of wages exist side by side, simultaneously, in the same branches of industry."
Context: After giving examples of different wage systems in the same industries
Marx is saying if piece wages were really about rewarding skill or effort, you wouldn't see such arbitrary differences. The examples prove it's about control and profit, not fairness.
In Today's Words:
If piece-rate pay was actually better for workers, why do some companies use it and others don't for the exact same jobs?
"In the regular factories in which throughout piece wages predominate, particular kinds of work are unsuitable to this form."
Context: Explaining how even piece-wage factories use time wages for certain tasks
This reveals that wage systems are chosen based on what gives employers the most control and profit extraction for each type of work, not what's fair to workers.
In Today's Words:
Companies pick whatever payment method squeezes the most productivity out of each job.
Thematic Threads
Class
In This Chapter
Piece wages disguise the fundamental class relationship between workers and owners by making exploitation seem like individual choice
Development
Builds on earlier themes of surplus value extraction, showing how payment methods serve class interests
In Your Life:
You might see this when your workplace offers 'flexible' arrangements that actually increase your workload without real compensation
Identity
In This Chapter
Workers develop false consciousness, seeing themselves as individual entrepreneurs rather than collective laborers
Development
Continues Marx's analysis of how capitalism shapes worker self-perception and relationships
In Your Life:
You might catch yourself thinking 'I'm not like other workers' when your job has performance incentives that isolate you from colleagues
Control
In This Chapter
The illusion of controlling your earnings through effort masks the reality of systematic rate manipulation
Development
Introduced here as a key mechanism of capitalist labor relations
In Your Life:
You might experience this in any job where 'working smarter' somehow never translates to proportionally higher long-term earnings
Competition
In This Chapter
Piece wages pit workers against each other instead of encouraging collective action against employers
Development
Introduced here, showing how payment structures divide the working class
In Your Life:
You might notice yourself resenting coworkers' success instead of questioning why there isn't enough success to go around
Surveillance
In This Chapter
Workers become self-supervising under piece-rate systems, eliminating the need for external oversight
Development
Introduced here as an advanced form of workplace control
In Your Life:
You might find yourself working through breaks or checking work emails at home without anyone explicitly asking you to
You now have the context. Time to form your own thoughts.
Discussion Questions
- 1
Marx shows that whether you're paid hourly or per piece, the fundamental relationship stays the same. What does he mean by this, and why does the payment method matter less than it appears?
analysis • surface - 2
Why does Marx argue that piece-rate wages make workers 'police themselves'? What changes in workplace dynamics when pay depends on individual output rather than hours worked?
analysis • medium - 3
Where do you see this 'piece-rate' pattern in modern work? Think about gig economy jobs, sales positions, or performance-based pay structures. How do they create similar effects to what Marx describes?
application • medium - 4
If you were offered a choice between hourly wages and piece-rate pay for the same type of work, what questions would you ask to determine which actually serves your interests better?
application • deep - 5
Marx suggests that systems appearing to give workers more control often give them less. What does this reveal about how power disguises itself in modern relationships—not just at work, but in other areas of life?
reflection • deep
Critical Thinking Exercise
Calculate Your Real Hourly Rate
Think of a job you've had or know about where pay seemed tied to performance, output, or results rather than straight hourly wages. This could be commission sales, gig work, piece-rate manufacturing, or even salaried work with productivity expectations. Calculate what you actually earned per hour worked, including unpaid time like commuting, waiting, or administrative tasks.
Consider:
- •Include all time spent working, not just 'productive' time that generated pay
- •Factor in expenses you covered (gas, phone, equipment) that reduced your actual earnings
- •Compare your calculated hourly rate to what a straight hourly wage would have paid for the same total time
Journaling Prompt
Write about a time when you felt like you had control over your earnings but later realized the system was designed to benefit someone else more than you. What did you learn about recognizing when apparent freedom is actually disguised constraint?
Coming Up Next...
Chapter 22: Why Your Paycheck Goes Further Elsewhere
Having dissected how wages work within individual countries, Marx next examines why workers in different nations earn vastly different amounts for similar work—and what this reveals about global capitalism's uneven development.




