Types of Compensation Wage is an hourly rate

Types of Compensation • Wage – is an hourly rate of pay for an employee. • Minimum wage – is the least amount of money an employee can be paid per hour. • Straight salary – is the set rate of pay for work performed. Copyright © Notice: The materials are copyrighted © and trademarked ™ as the property of The Curriculum Center for Family and Consumer Sciences, Texas Tech University.

Types of Compensation • Straight commission – pays a specific percentage of the total volume sold. • Salary plus commission – is a set salary plus a percentage of each sale as an incentive. • Salary plus commission-over-quota – is a set salary and a percentage of sales over a certain quota. Copyright © Notice: The materials are copyrighted © and trademarked ™ as the property of The Curriculum Center for Family and Consumer Sciences, Texas Tech University.

Types of Compensation • Tips – are small sums of money, usually cash, given to employees by satisfied customers. • Bonus – is an extra payment given to an employee for excellent work or as a share of the business’ profits. • Incentive – is a reward that acts as a motivation for an employee to be as productive as possible. Copyright © Notice: The materials are copyrighted © and trademarked ™ as the property of The Curriculum Center for Family and Consumer Sciences, Texas Tech University.