noun. additional pay, a higher wage, or a bonus paid to promote the productivity of an employee. Also called incentive wage .

What is an example of incentive pay?

Examples of incentive pay include: Cash, including commission, year-end bonuses, sign-on bonuses, and performance bonuses. Shares or company stock options.

Is incentive pay a bonus?

Incentive pay refers to giving employees bonuses or other forms of compensation in exchange for going above and beyond their normal duties. It is used as a way to incentivize employees to continue doing excellent work.