SmartHCM

premium pay

What is premium pay?

Premium pay refers to increased compensation that may be provided to an employee for a variety of reasons:

  • Working what are typically less desirable hours or days, such as holidays or weekends
  • Last-minute changes to an employee’s schedule, be that location or shift time, particularly when the employee is not consulted prior to the change
  • Night shift, if not part of the employee’s regular schedule
  • Call-back, which refers to when an employee is asked to work during a workplace emergency
  • Hazard pay, which is offered when the work environment involves challenging circumstances, such as direct exposure to hazardous chemicals