Commission and piecework

Commission and piecework

Commission:

o   Commission is paid to a sales person to motivate them to sell more products.

o   Its calculated as a percentage of the total value

o   Most sales people receive a fixed amount per week called a retainer which doesn’t depend on sales.

Piecework:

o   Piecework means that workers are paid for the amount of work that they have completed

o   They don’t get paid per hour

o   Piecework is usually factory workers, fruit pickers or packers who are paid on piece rates