What's the difference between salary and performance salary?

First, the difference between wages and performance pay

1. The purpose of performance pay is to restrain and the purpose of bonus is to motivate. The essence of performance pay is "post value deposit", which divides the corresponding basic salary of employees into two parts, one part is paid as fixed salary, and the other part is paid as performance pay according to employees' personal performance. The essence of bonus is a kind of "enterprise performance bonus", that is, a certain amount of performance bonus is taken out from the excess part of enterprise performance target and distributed to enterprise employees differently.

2. Legal basis: Article 32 of the Regulations on Personnel Management of Public Institutions.

The state establishes a wage system for public institutions that combines incentives and constraints. The salary of staff in public institutions includes basic salary, performance salary and allowance. The salary distribution of public institutions should be combined with the characteristics of different industries and institutions, reflecting factors such as job responsibilities, work performance and actual contribution.

Second, what is performance pay?

Performance pay is a salary system based on effective assessment of employees' performance, which links wages with assessment results. Its theoretical basis is "reward according to performance". Enterprises use performance pay to regulate employees, thus encouraging employees' behavior. By adjusting the income of winners and losers, they encourage employees to pursue behaviors that meet the requirements of enterprises, stimulate the enthusiasm of each employee, and strive to achieve enterprise goals. Performance pay system can improve work performance. If it can play a better role, employers must be sure that they can effectively evaluate job performance. The traditional performance-based salary system is usually individual performance, and the form of recognition for employee performance improvement is usually to increase the basic salary within the specified time every year.