What is match pay?

Match pay is a type of compensation structure commonly used in the retail industry, particularly in sales roles. It is based on the commission system, where an employee receives a base salary plus a percentage of the value of the products or services they sell.

In match pay, the employee is guaranteed a certain minimum level of compensation, often in the form of a base salary or hourly wage. However, their total earnings are also dependent on their sales performance. The employer will match the employee's earnings up to a certain threshold, usually in the form of a commission or bonus.

This structure is designed to incentivize employees to increase their sales performance and earn more money. It can be beneficial for both the employer and the employee, as it rewards high performers while still providing a base level of income for all staff.

Match pay can vary depending on the industry, company, and specific role. It is important for employees to understand how their compensation is structured and what they need to do to earn additional income through this type of pay system.