What is Incentive Pay ?
Incentive Pay is extra compensation given to employees for going above and beyond their regular duties. It is separate from their standard salary and other employee benefits.
One of the most common forms of incentive pay is leave encashment, in which employees receive compensation for unused leave, along with additional cash rewards for maintaining excellent attendance throughout the year. Another common form of incentive pay is sales incentives, which salespersons receive for successfully closing deals.
Incentive pay is not always limited to cash rewards. Some companies also offer team lunches, gift vouchers, leave encashment benefits, or sponsored family vacations as rewards. Such rewards are commonly referred to as ‘casual incentives’.
