Incentive
wages refer to performance linked compensation paid to improve motivation and productivity
of employees. It implies monetary inducements offered to employees to perform beyond
acceptance standards. Wage incentives include all the plans that
provide extra pay for extra performance in addition to regular wages for the
job.
According
to the National Commission on Labour, “Wage incentives are extra financial
motivation. They are designed to stimulate human effort by rewarding the person,
over and above the time rated remuneration, for improvements in the present and
targeted results”.
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