The Basic Factors in Determining Pay Rates

Learning Objective 1

  • List the basic factors determining pay rates.

Employee compensation includes all forms of pay going to employees and ­arising from their employment. It has two main components, direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial ­payments (financial benefits like employer-paid insurance and vacations).

In turn, there are two basic ways ...

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