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Once you secure a job in any organization, it\u2019s always important that you understand how you will be paid and which type of payment your employer will be providing you with. The various types of pay include commission pay, hourly pay, or annual pay, also referred to as salary pay. It is essential that you are aware of the differences between commission pay and hourly pay.<\/p>\n
In most cases, commission pay is the typical form of payment for employees working in sales. A sales commission is a sum of money paid to an employee once he or she has completed a task, whether it may be selling a certain amount of goods or services. A commission pay in most cases is a percentage of the total sale a salesperson makes and they can earn as much as their efforts will allow. When an employee\u2019s commission pay falls below the minimum wage, the employer is required by law to make up the difference.<\/p>\n
It is common for employers to use commission pay as incentives to increase their employees\u2019 productivity and efficiency. And commission may be paid instead of an employee\u2019s salary or in addition to an employee\u2019s salary. Whereas hourly pay or salary, is a secure amount of money given to an employee, regardless of their sales.<\/p>\n
With the hourly pay, most laws set a minimum wage that an employee will get paid every hour he or she works. Using this rate, an employee\u2019s pay is easily calculated by knowing how many hours he or she worked. The hours worked then get multiplied by the set hourly rate.<\/p>\n
Whenever you are signing an employment contract, it is important that you carefully review the contract in order to know what you are entitled to and what type of payment you will be paid.<\/p>\n
If you, or someone you know, are facing legal issues in the workplace United Employees Law Group has the answers. Call Today for your free and confidential case review. Please feel free to CONTACT US with any questions about this blog or your exact situation.<\/p>\n
Photo Credit: Shutterstock\/ Billion Photos<\/p>\n","protected":false},"excerpt":{"rendered":"
Once you secure a job in any organization, it\u2019s always important that you understand how you will be paid and […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[77],"tags":[],"class_list":["post-810","post","type-post","status-publish","format-standard","hentry","category-employee-wages"],"acf":[],"yoast_head":"\n