On which of the following bases are home workers paid?

The correct answer is Option (4) → On a piece-rate basis

Option (1) On a daily wage basis — Incorrect. A daily wage pays a fixed sum for each day of work. Home workers are not paid for their days; their pay depends on how many pieces they finish.

Option (2) On a monthly salary basis — Incorrect. A monthly salary is a fixed payment found in regular jobs. Home workers have no such fixed income, since they earn only for the pieces they make.

Option (3) On a time-rate basis — Incorrect. Under a time-rate, pay is linked to the hours spent at work. Home workers are paid by output, so their hours do not decide their earnings.

Option (4) On a piece-rate basis — Correct. A piece-rate means pay for each piece made, so earnings depend on the number of pieces. An agent brings home workers the raw materials and picks up the finished product.