Fringe benefits: Extra benefits provided to employees in addition to the normal compensation paid in the form of wage or salary.

Employee stock option plan: It provides a mechanism through which certain eligible employees may purchase the stock of the company at a reduced rate.

Incentive wages: Incentive wages are the extra payments for superior performance.

Benefit: An indirect reward given to an employee or group or employees as a part of organizational membership.

Compensation administration: Deciding about how much an employee should be paid observing internal as well as external equity.

Pay grades: Group of jobs within a particular class that are paid the same rate.

Pay equity: An employee's perception that compensation received is equal to the value of work performed.

Wage curve: Curve in a scatter diagram representing the relationship between relative worth of jobs and wage rates.

Minimum wage: Wage sufficient to sustain and preserve the efficiency of the worker and to provide him basic amenities.

Wage policy: Principles acting as guidelines for determining a wage structure.

Wage structure: Consists of various pay scales showing ranges of pay within each grade.

Wage rate: It is the amount of remuneration for a unit of time, excluding incentives, overtime pay etc.

Earnings: Total amount of remuneration received by an employee during a given period.

Salaries: Remuneration paid to the clerical and management personal employed on a monthly or yearly basis. However the distinction between wages and salaries need not…

Incentives: Motivational devices used such as bonuses or commissions to encourage special work effort.