Which of the following is included in wage and salary add-ons?

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Wage and salary add-ons refer specifically to additional compensation elements that complement an employee's base salary. In this context, travel allowances and overtime compensation fit perfectly as they represent extra payments made to employees for specific situations or work-related expenses beyond their regular earnings.

Travel allowances are provided to cover expenses incurred when employees travel for work-related purposes, ensuring they are not financially burdened while performing their job duties. Overtime pay, on the other hand, is an add-on that occurs when employees work beyond their standard hours, providing them with additional compensation to reflect their extra effort and time commitment.

In contrast, base pay constitutes the fixed amount of money an employee earns before any additions, such as bonuses or benefits, are applied. Health insurance benefits, while an essential part of employee compensation, are classified as fringe benefits rather than direct wage and salary add-ons, as they do not represent cash payments made directly to employees. Similarly, performance bonuses are typically classified under incentive pay rather than standard wage add-ons, as they reward employees for achieving specific goals or performance metrics. Thus, travel allowances and overtime represent clear examples of wage and salary add-ons.

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