Wage Drift

What is Wage Drift?

This refers to the difference between an employee’s base salary compared to the pay they are actually given at the end of the pay period.

Why Wage Drift Matters

Wage Drift plays a key role in an organization’s total compensation strategy. Getting this element right helps attract qualified candidates, retain top performers, and maintain internal pay equity.

HR and payroll teams should regularly benchmark against market data and review calculations to ensure accuracy, fairness, and compliance with applicable wage and hour laws.