Premium pay refers to special pay rates provided to employees for working during weekends, holidays, late shifts, or engaging in hazardous work. Also known as penalty pay, it serves as an incentive for employees to work during less desirable times or in high-risk occupations.
The standard wage rate refers to the normal or base salary of an employee before any overtime or premium pay is computed. It is vital for setting and managing payroll expenses within an organization.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.