Definition of Pay Rate | Employee Pay Rate in Business

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Pay Rate Definition

Term Definition
Pay rate or wage rate is the rate of pay per period of work or unit of production. The national average wage rate can be found on the Social Security Administration website.
Extended Definition
Pay or wage is the compensation paid to workers for their labor. It is usually in the form of money. The rate at which it is offered is called pay rate. Pay rate can be based on time or unit of production. It refers to the basic wage, which includes all the regularly paid or guaranteed allowances, but excludes gratuities, bonuses, overtime, employer-made Social Security payments, family allowances, and other payments in cash or kind that are supplementary to the basic wage. For information on national average wages for payroll, consult the Social Security website.
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