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incentive pay

American  

noun

  1. additional pay, a higher wage, or a bonus paid to promote the productivity of an employee.


Etymology

Origin of incentive pay

First recorded in 1955–60

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

“The total incentive pay determination process is informed by performance assessments, but annual incentive payouts are ultimately discretionarily determined,” advisory firm Institutional Shareholder Services wrote in a report recommending clients vote no.

From The Wall Street Journal • May 20, 2026

Year-end bonuses are projected to be robust for the second-straight year, with double-digit increases in incentive pay in some businesses, according to financial services compensation consultancy Johnson Associates.

From Barron's • Nov. 5, 2025

The High Pay Centre said the rise was in part due to the economic recovery following lockdowns and through bosses having "strong incentive pay awards tied to profitability and share prices".

From BBC • Aug. 21, 2023

It also includes a more accurate review process of crediting past health-care experience; incentive pay for lead roles and night and extra shifts; and bonuses to encourage workers to stay.

From Seattle Times • Sep. 24, 2022

Parker will note the airline has “developed incentive pay programs for peak travel periods to fortify our efforts to operate every flight on our schedule.”

From Reuters • Dec. 13, 2021

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