Business College

Distinguish between
Supplementary compensation
with
Base
Compensation
with
citation from books-

Answers

Answer 1

Basic pay in the form or wages and salary is referred to as base or primary compensation. It is a set, non incentive payout based on the amount of time spent working. Incentives and variable rewards that are based on either an individual's productivity or the output of the collective as a whole make up supplemental compensation.

What exactly is a supplementary payment?

Compensation that is provided in addition to an employee's regular salary or wages is known as supplemental pay. Bonuses, tips, paid vacation or sick leave, prizes, retroactive pay hikes, and other types of extra compensation are all examples of supplemental pay.

What does base pay mean?

The most popular ways to describe base pay are as a hourly basis, monthly payment, or annual salary. It excludes benefits and extra money including commission, tips, overtime, and bonuses. In light of all this, base pay might only make up a small portion of an employee's overall salary.

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