What is the difference between salary and incentive

English US. Question about English US. What is the difference between compensation and incentive? Feel free to just provide example sentences. Report copyright infringement. The owner of it will not be notified. Only the user who asked this question will see who disagreed with this answer.

Read more comments. Salary is monthly wage for doing a specific job, Where as incentiveis given on good performance. Salary is the Fixed amount paid to the employee every month for the services rendered by them. Where else insentive is lumpsum , and it a source of Motivating employees for performing more efficiently. A salary is a type of payment a person gets for work done for a job.

A salary is usually paid for a fixed period, like a month or a week. An incentive is any factor [financial or non-financial] that enables or motivates a particular course of action, or counts as a reason for preferring one choice to the alternatives. It is an expectation that encourages people to behave in a certain way.

Salary is a regular payment on regular intervals for the services rendered by an employee whereas incentive is a motivational payment made by the employer anticipating better performance in future. Salary is an amount paid to the employees on monthly basis for the services rendered by them, whereas Incentives are paid based on their outstanding performance.

Incentives are any form of variable payment tied to performance. The payment may be a monetary award, like cash or equity, or a non-monetary award, such as merchandise or travel.

In bonus, payments may be made in cash, shares, share options or other items of value. In the context of sales compensation, a defined, pre-established amount of money to be earned for achieving a specified performance goal.

An incentive can be a bonus, but a bonus cannot serve as an incentive. It is because the incentive is forward looking and encourages the employees to perform a given task well, where as a bonus is something which is only handed out once a task has been fulfilled and the boss thinks that individuals have outdone themselves. For Quick Alerts. Subscribe Now. India - 34,, World - ,, For Daily Alerts. Upcoming Stock Split In India For investment related articles, business news and mutual fund advise.