pay


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Payment

The reception of compensation for a good or service. For example, if one sells a hairdryer for $10, the payment is $10. In a cash sale, payment is made immediately or almost immediately, while in a credit sale, payment may be delayed for a certain period of time.

pay

the money paid to an employee for performing specified work tasks or JOBS. Payment to employees for the labour they provide takes two main forms:
  1. PAYMENT BY TIME, principally weekly WAGES and OVERTIME, together with monthly SALARIES;
  2. PAYMENT BY RESULTS, principally PIECEWORK, INCENTIVE BONUSES, GROUP INCENTIVE BONUSES.

The main distinction between the two is that ‘payment by time’ systems remunerate workers for the amount of labour supplied (i.e. the input of labour) per time period (hourly, weekly etc.) irrespective of the amount of output produced; whereas ‘payment by results’ systems remunerate workers specifically for the amount or value of the output produced in a given time period. ‘Payment by results’ is favoured by many firms because it is thought to provide a strong financial incentive for workers to strive to maximize their output rather than work at a more leisurely pace, but the firm may be required to install appropriate INSPECTION systems to ensure that extra output has not been achieved at the expense of product quality and reliability.

Pay rates are determined by a number of factors including the forces of supply and demand for particular types of job in the LABOUR MARKET, the bargaining power of TRADE UNIONS (see COLLECTIVE BARGAINING) and the general economic climate (see, for example, PRICES AND INCOMES POLICY). In addition to receipt of money employees may receive various other work-related benefits such as free or subsidized meals, travel allowances, a company car, etc. (see FRINGE BENEFITS). See ATTENDANCE BONUS, MERIT PAY, COMMISSION, FEE, PERFORMANCE-RELATED PAY, CAFETERIA BENEFITS, COMPARABILITY, INCREMENTAL PAY SCALE, WORK MEASUREMENT, PROFIT-RELATED PAY, EMPLOYEE SHARE OWNERSHIP PLAN, PAY DIFFERENTIALS, LOW PAY, GAINSHARING, EXECUTIVE SHARE OPTION SCHEME, LONG-TERM INCENTIVE PLAN, SHARE INCENTIVE PLAN, MINIMUM WAGE RATE, FINANCIAL PARTICIPATION.

pay

the money paid to an employee for performing specified work tasks or jobs. Payment to employees for the labour they provide takes two main forms:
  1. payment by time, principally weekly WAGES and OVERTIME, together with monthly SALARIES.
  2. payment by results, principally PIECEWORK payments, bonuses (see BONUS SCHEME), PROFIT-RELATED PAY and COMMISSIONS.

The main distinction between the two is that ‘payment by time’ systems remunerate workers for the amount of labour supplied (i.e. the input of labour) per time period (hourly, weekly, etc.), irrespective of the amount of output produced, whereas ‘payment by results’ systems remunerate workers specifically for the amount or value of the output produced in a given time period. ‘Payment by results’ is favoured by many firms because it is thought to provide a strong financial incentive for workers to strive to maximize their output rather than work at a more leisurely pace, but the firm may be required to install appropriate inspection systems to ensure that extra output has not been achieved at the expense of product quality and reliability.

Pay rates are determined by a number of factors, including the forces of supply and demand for particular types of job in the LABOUR MARKET (see WAGE RATE), the bargaining power of TRADE UNIONS (see COLLECTIVE BARGAINING) and the general economic climate (see, for example, PRICES AND INCOMES POLICY).

In addition to receipt of money, employees may receive various other work-related benefits such as free or subsidized meals, travel allowances, a company car, etc. See FRINGE BENEFITS, DEFERRED COMPENSATION. See EMPLOYEE SHARE OWNERSHIP, PROFIT SHARING.

References in periodicals archive ?
In the fifth slab, a person earning more than Rs291,666.66 per month but less than Rs416,666.66 is liable to pay a fixed amount of Rs30,833.33 and 20% of the amount exceeding Rs291,666.66 per month from FY20.
For example, if a person is drawing Rs350,000 a month, they will pay Rs30,833.33 and 20% of Rs58,333.34 which comes to Rs11,666.66.
Now they will pay an additional Rs14,999.99 every month.
Under slab number six, a person earning more than Rs416,666.66 per month but less than Rs666,666.66 is liable to pay a fixed sum of Rs55,833.33 and 22.5% of the amount exceeding Rs416,666.66 per month in FY20.
If a person is drawing Rs550,000 a month, they will pay Rs82,083.32 per month in FY20 compared to Rs45,833.33 per month in FY19.
On annual token of vehicles, filers pay Rs 800 to 10,000 while non-filers pay Rs 1200 to Rs 30,000tax, whereas on registration of vehicles, tax filers pay Rs 15000 to Rs 250,000as withholding tax while non-filers pay Rs 25000 to Rs 400,000.
Furthermore, on property transfer active tax payer pay only one percent tax against two percent tax paid by non-filers, and tax filer pay two percent on total amount of purchased property while non-filer pay four percent on the same.
Filers pay 10 percent tax on auctioning by government and other companies while non-filers pay 15 percent on the auction of goods of government or other companies.
Common errors included failing to pay workers travelling between jobs, deducting money from pay for uniforms and not paying overtime.
That's why today we are naming hundreds of employers who have been short changing their workers; and to ensure there are consequences for their wallets as well as their reputation, we've levied millions in back pay and fines."
Bryan Sanderson, Chairman of the Low Pay Commission, backed the decision to name national brands and small businesses alike.
Mr Sanderson said: "The Low Pay Commission's conversations with employers suggest that the risk of being named is encouraging businesses to focus on compliance.