Incentive_Description

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”.