Question

Distinguish between base compensation and supplementary compensation of labor

Answer 1

• Base compensation can also be termed monetary compensation. It involves monetary benefits or cash given to the employees in the form of wages or salaries.
• The term wage is used to denote remuneration to the people who are doing physical or manual work while the terms salary is used for employees working in an organization.
• Additional compensation denotes benefits over or above their salaries or wages. These compensations are provided to the employees to create a sense of belongingness and increase efficiency.