Salary Pay vs Commission Pay

Most jobs offer compensation via a salary or hourly wage pay. However, some offer only pay on commissions, and some have mixed pay (e.g. waiters, tips+wage). These kinds of jobs can offer higher average yearly compensation, however they do not have consistent pay. This article will help you decide which is best for you.

Pros and cons of commission pay

Pros:

- Typically commission pay can earn you more in the long run, as no one likes sporadic pay

- It can be helpful in transitioning to self-employment or even retirement

Cons:

- Inconsistent

- Makes taxes harder

Pros and cons of salary / hourly pay

Pros:

- Consistent

- (Wage) How many hours you put in * hourly rate = Money earned

- (Salary) You get paid the same amount (plus bonuses) every year

Cons:

- Typically earns less in the long run

- Can make it harder to change jobs into something with a different schedule

 

Hope you found this useful! Happy job hunting!