Definition: Commission is a sum of money that is paid to an employee upon completion of a task, usually selling a certain amount of goods or services. Commission may be paid as percentage of the sale or as a flat dollar amount based on sales volume.
Employers often use sales commissions as incentives to increase worker productivity. A commission may be paid in addition to a salary or instead of a salary.
When commission is paid in addition to a salary, it may be included in the employee's paycheck or paid on a separate schedule i.e. bi-monthly or monthly.
