What is Commission Based Salary
Commission based salary is alternative of fixed salary. in commission based salary the individual is offered a certain percentage of a target achieved. This target is normally a revenue. There are two kind of commission based salary one is total commission based salary and other is minimum salary with a percentage of target achieved.
Types of Commission Based Salary
Total Commission based Salary
Under this structure the individual is offered no fix salary and he get a certain percentage of revenue earned by him. for example an employee may be hired at 1% of sales target achieved and if he makes a sales of 100,000 then he is entitle to receive an amount of 1000.
Fixed Salary Plus Commission
Under this structure he is guaranteed with a minimum wage and plus a commission of a target achieved. normally the commission start after a certain level of basic performance. for example the individual is given 1000 for sales upto 100,000 and and sales target achieved above 100,000 will give him a chance to earn 1% of sales.
