The type of pay raise in which the employee can receive the entire amount of the increase at the beginning of the year is called a(n)
A) incentive payment.
B) lump-sum salary increase.
C) commission salary increase.
D) gain-sharing salary increase.
E) percentage-of-salary payment.

Question

Quizplus · Accepted Answer

A lump-sum salary increase is a type of pay raise in which the employee can receive the entire amount of the increase at the beginning of the year. This is in contrast to other types of pay raises, such as incentive payments, commission salary increases, and gain-sharing salary increases, which are typically paid out over time as the employee meets certain performance targets or as the company achieves certain financial goals. A percentage-of-salary payment is not a type of pay raise, but rather a type of compensation structure in which an employee's total pay is based on a percentage of their salary or a percentage of the company's profits.

The Type of Pay Raise in Which the Employee Can