Monetary incentives are offered as a supplement to regular wage payment. The basic purpose behind incentives is to encourage/motivate employees to take more interest/initiative in the work, show concrete results and collect extra payment as per rules. Incentives are “payments by results”. Incentive payment is in addition to regular wage payment. Incentives depend on productivity, sales, profit, cost reduction efforts of employees and so on.
The incentives offered to employees include a) Individual incentives, and b) Group incentives.
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