In the presence of contractor system of forest work in Pakistan, the possibilities of improvement of forest operations, through the introduction of improved tools, techniques, mechanization and vocational training of contract workers, are very low. Replacement of contract system is only possible when the forestry works are done departmentally, through the direct engagement and payment of forest workers. For this work an appropriate wage system is an important pre-requisite. At present there is no incentive oriented wage system (piece-rates) in forestry, which is developed on time and productivity principles. To develop a piece-rate on the basis of time demand and productivity considering tree variables and work place factors, time studies were carried out in Kaghan Valley on felling and conversion of deodar (Cedrus deodara) and fir/spruce (Abies pindrow / Picea smithiana) trees. Piece-rates so developed are presented in this article.