Types of compansation

Compansation is payment given by the companies to its employees for doing work.it may be in different form.they are as under.

  1. Basic salary : Basic salary or basic pay is the payment made by the employer to its employees for working in the organisation or company. It may be according agreement .
  2. Commission: Communication is the extra payment made by the employer to employee in percentage basis according to additional performance the employee. Commission is highly practiced in sales organisation where commission will be given by the company to sales person according to sales target reached by him.
  3. Bonus : Bonus is the payment made by company as the sharing part of the companies profits with its employees. It may be because of the good performance from the employees.
  4. overtime payment : Overtime payment is the payment made by company to employees for the additional work done by the employees.
  5. Stock issuing : some of the companies will give its equity shares to the employees as appreciating work of the employees. And treating them as the owners of the company.
  6. Allowances: It is the payment made by employees as to cover the expenses which are incurred by employees which are related to work.