This type of pay is defined as added pay for employees that have reached the maximum of a pay grade and are unlikely to move into higher grades.

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Longevity pay is a common practice in organizations where employees receive an increase in pay based on their length of service in the organization. It is also known as "longevity bonus" or "service increment pay." This type of pay is designed to reward employees for their loyalty and contribution to the company. Longevity pay is not based on performance or merit but on the length of service, hence the name. This pay is usually given in the form of a percentage increase added to the base salary.

This Type of Pay Is Defined as Added Pay for Employees