Wage drift

Wage drift is defined as the gap between the actual wage given to a worker and the wage agreed collectively. The rise might be attributable to a variety of factors, including overtime, business bonus payments, and so on.

Wage Drift may happen in a variety of situations

  • As previously stated, a worker’s wages may rise as a result of overtime or other causes. Wage drift can develop as a result of an increase in the final payment of a salary.
  • Wage drift can also occur when a worker’s pay or wage is unchanged but the workforce is underused. When there is a decrease in output but no change in wage, this might happen. As a result, the company’s per-unit cost rises. 

 

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