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HR glossaryHR glossary

Wage Drift

A situation wherein there is a difference between the wages negotiated by the company and what is actually paid. It generally occurs when there’s an unpredictable demand that needs the employees to work more. This definitely leads to an increase in the payments due to the overtime worked. Thus, wage drift leads to actual wages being more than the agreed-upon basic pay.

What is Wage Drift?

A situation wherein there is a difference between the wages negotiated by the company and what is actually paid. It generally occurs when there’s an unpredictable demand that needs the employees to work more. This definitely leads to an increase in the payments due to the overtime worked. Thus, wage drift leads to actual wages being more than the agreed-upon basic pay.

Wage Drift | HR Glossary | MonoHR