Commission

Commission

is another form of compensation paid to an employee, typically to salespeople, as an incentive or motivation to complete tasks or achieve successful sales that contribute to overall company revenue. The commission is usually calculated as a percentage of total sales or as a fixed amount per transaction.

Straight Commission

This commission is computed based on the percentage of total sales, with no basic wage.

Graduated or Tiered Commission

This commission is calculated based on the sales bracket, where the rate of commission increases as the sales increases (tiered system).

Salary Plus Commission

This commission is added on ton of the has serple and is usually calculated as a percentage of the sales generated by the employee. A fixed based salary plus a percentage.

Draw Against Commision

This is a compensation structure where an employee receives an advance payment (called a "draw") that is offset against future earned commissions.

Override Commission

This commission is awarded to a supervisor or manager, and the amount depends on a percentage share of the total sales made by their subordinates or team.

Piecework

Earnings based on the number of Items or products completed