What is supplemental pay?

Supplemental pay is additional compensation provided to employees beyond their regular wages or salary. This can come in various forms such as bonuses, commissions, overtime pay, holiday pay, and shift differentials. Supplemental pay is typically provided as a reward for exceptional performance or to incentivize employees to work in less desirable conditions or during certain times.

Some companies offer supplemental pay as part of their employee benefits package to attract and retain top talent. Supplemental pay can also help motivate employees to increase productivity and performance. It is important for employers to clearly communicate their policies and criteria for awarding supplemental pay to ensure fairness and transparency in the organization.