Pay Plans. Cost of living adjustments (COLAs). Period increases to base pay based on CPI (inflation).
Legally Required Benefits.Social security. Required to be available to every US citizen. Meant to ensure the quality of living for retirees, senior citizen care, those with disabilities, and to replace money lost for families of deceased persons. The Federal government is required to comply.
Incentive Plans. Merit Pay. Permanent increases to base pay; performance-based. Advantages are: Permanent increases in base pays (hourly/salary). Disadvantages are: Based on performance standards; can be vague.
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