Encompassing everything in a certain class or group; movement in the stock market that affects almost all stocks in the same direction.
An annual wage refers to a fixed salary paid out to an employee over the course of a year, generally used to determine total compensation for employment services provided within that period.
The base pay rate refers to an employee's standard hourly wage or regular rate of pay, on which overtime and other wage supplements are calculated.
The basic wage rate is the amount of money paid to an operator for a specified period of work, excluding additional payments such as incentive bonuses, shift premiums, overtime, and other premium payments.
Company benefits are various types of non-wage compensation provided to employees in addition to their normal wages or salaries. These can include health insurance, retirement plans, and paid time off, among other perks aimed at improving employee satisfaction and retention.
Compensatory stock options are financial instruments provided to employees as partial compensation for their services, commonly used by firms to align employee interests with those of shareholders.
Deferred compensation is a tax-advantaged plan under which an employee postpones a portion of their salary in exchange for the employer's promise to pay this salary in the future, usually to achieve tax benefits and retirement planning.
Double time refers to a payment condition in which employees are paid twice their regular hourly rates for specific types of work, including overtime, Sundays, or holidays.
An Employee Share Ownership Plan (ESOP) is a program that provides a company's employees with shares in the company. The ESOP purchases these shares with the assistance of the sponsoring company, and shares are allocated to employees who meet specific performance criteria.
An approved share option scheme that entitles a specified class of directors or employees to purchase shares in the company in which they are employed.
Non-monetary benefits offered to the employees of a company in addition to their wages or salaries, and benefits provided to shareholders beyond dividends.
A golden handshake, also known as a golden good-bye, is an ex gratia payment made by an employer to an employee upon termination of employment, such as in the event of a company takeover. Certain conditions may allow such payments to be partially or fully tax-free.
Group Disability Insurance provides coverage for a group of employees, offering monthly benefits if members are unable to perform their job functions due to illness or accident. Benefits are typically limited to a specified duration and capped at a percentage of pre-disability earnings or a flat dollar amount, whichever is lower.
Holdback pay refers to wages or salary withheld from an employee by the employer until a specific condition is fulfilled. This may happen due to the time necessary for payroll computation or as security against cash advances or tools lent to an employee.
An Incentive Stock Option (ISO) is an equity-type compensation plan where qualifying stock options are free of tax at the date of grant and the date of exercise but are taxed when sold.
Job classification is a method of categorizing jobs into ranks or classes for the purposes of work comparison and wage comparability. It helps organizations systematically ensure equitable and competitive employee compensation.
Longevity pay refers to salary or wages that are based on an employee’s seniority or length of service with an organization. The greater the length of service, the greater the longevity pay. It may also include bonuses for remaining on a job beyond a certain period.
A merit increase is an increase in wages achieved through superior performance on the job. It is also known as merit pay or a merit raise, and is commonly specified as negotiable in contracts between unions and management.
The minimum wage is the lowest legal rate of remuneration that employers must pay workers. It varies by region, age, and employment type, aiming to ensure a basic standard of living for workers.
A pay period is the time duration during which an employee's earnings are calculated to ensure accurate and timely payments. This duration can vary from a week, half a month, to an entire month.
Payroll is the aggregate periodic amount a business pays its workers and a list of employees along with their compensation.
A comprehensive examination of the term 'Per Diem,' which refers to a daily allowance used for travel, entertainment, employee compensation, or miscellaneous business expenses.
Premium pay refers to special pay rates provided to employees for working during weekends, holidays, late shifts, or engaging in hazardous work. Also known as penalty pay, it serves as an incentive for employees to work during less desirable times or in high-risk occupations.
Profit-related pay (PRP) refers to the situation where employee compensation is directly linked to the profitability of the employer. This approach aims to boost employee motivation, commitment, and performance by aligning their interests with the company’s commercial success.
Profit-Related Pay (PRP) is an employee compensation plan where the amount paid to an employee is tied to the company's profitability. It aims to align the interests of employees and shareholders by incentivizing employees to work towards increasing company profits.
Severance benefits are stipulated funds or compensation provided to employees who are terminated or laid off from a company.
Sick pay refers to payments made to an employee to replace wages during periods of absence due to illness or personal injury. It includes payments from various sources such as employer, welfare funds, and state sickness or disability funds.
A stock option is a financial instrument that gives the holder the right to buy or sell a company's stock at a predetermined price within a specified timeframe. It can be used both as an investment tool and as an employee incentive.
Take-home pay is the amount of wages a worker actually receives after all deductions, including taxes, have been made from their gross income.
Two-Tier Wage Plans involve union wage concessions that allow new employees to be paid a lower rate than veteran employees, aiming to enable companies to compete more effectively.
A wage floor, or minimum wage, is the lowest legal remuneration that employers can pay their workers, established either by law or through an agreed-upon wage bracket in collective bargaining agreements.
A wage scale is a structured framework outlining the wage rate for each employee in a department, division, or company, taking into account the type of job, its duties, responsibilities, and the general labor market.
Wages costs are expenses incurred by businesses to compensate employees for their labor. These are a critical part of operating costs in any organization.
