Pay Rate Definition

Pay rate, or wage rate, is the rate of pay per period of work or unit of production.

Pay Rate Extended Definition
Pay or wage is the compensation paid to workers for their labor. 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 that are supplementary to the basic wage.

Last Updated By

Rachel Blakely-Gray | Apr 28, 2023

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