WAGE DRIFT
Wage drift
Wage drift refers to the phenomenon where the actual wages received by workers exceed the wages that were initially agreed upon through collective bargaining or employment contracts. The difference can arise due to various factors, causing an increase in the overall remuneration of workers beyond the agreed-upon base pay. Wage drift happens commonly in many labor markets and can result from several situations.
Employees see it as an opportunity to earn more than their standard income, particularly through extra labor or performance-based prizes. Employers, on the other hand, may need to manage and budget for these variations in labor costs, taking into account the potential influence on the organizations overall financial health. A workers salary may increase due to overtime, an increase in a salarys final payout, or when the workforce is underutilized.