Wage compression hinders rewarding employee effort

noticiasaominuto.com (Portuguese)

Companies use subsidies to mitigate wage compression, making salaries more attractive and less penalizing. Economists note that benefits like food and transport allowances help offset wage compression, making it difficult to reward effort. This phenomenon, ongoing for two decades, is exacerbated by rapid IRS bracket increases and a low minimum wage, impacting public and private sectors.


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Wage compression hinders rewarding employee effort | News Minimalist