Working on a Commission or a Fixed Salary?

Photo of author
Written By Adrian Cruce






Nowadays, there are two most common employment schemes – one is where the employee draws a fixed payment on a monthly basis, regardless of the profit the worker brings to the company. On the other hand, there are commission based jobs that offer the workers a cut from all the deals they bring to the company. Commission work schemes may seem to be a fairer and a more rewarding system for the hardworking personnel but they have their disadvantages too. These will be discussed in the later part of the prose.

Fixed Salary – Pros

fixed salary pro

With a known amount of cash to come at a specific date, it is clearly way easier to plan out the expenses of the month by having a clear image of the budget. Fixed salary employment can surely help a man in maintaining a balance in his life.

After calculating the fixed expenses, the utility bills, the children’ school fees, food expenses and such, a savings plan can be made which is essential for a smooth life.

All that is left to worry about are the naturally occurring expenses such as the car accidents and the medical issues. However, the great majority of the fixed income employment takes away that piece of tension as well.  They offer medical and car insurance by cutting a small part of the salary as premium hence ensuring a bump-free ride for you and your family.

Fixed Salary – Cons


A number of people have it in their mind that the intensity of the work load they handle is worth more than the salary they draw. They may be true but they may also be wrong.

Related Article:  Remember This When Entering The Retail Food Industry

The best way to find out would be to start working on a commission in order to get paid according to your proven ability. However, some people choose to dodge change, and keep working with the dissatisfaction thus ultimately becoming introverts.

Commission Based Employment – Pros

commission salary

Traditionally, the sales jobs offer commission based payment that has both advantages and disadvantages and the following paragraphs will make them clear.

With a commission based system, you will have no complaints about the payment once you receive it as it would fairly be according to your work and ability. By working under commission based employment you can grasp the limits of your income in your own hands. You will have the freedom to work for as long as you want, increasing your income with your own hard work.

The concept of being underpaid will be washed out of your life once you start working for commission based schemes.

Commission Based Employment – Cons


Without knowing an exact amount of income per month, it could be a hard task to plan out a budget on your own. Commission jobs do not provide insurance services, neither vehicle nor medical ones.

Managing premium expenses from your generated income could be a pain once in a while and especially if you are a family man and more so if you’re the sole bread-winner.

Both employment schemes have their perks and drawbacks yet one of the two may be suitable for some people according to their needs and abilities. After reading this article, you should have a clear picture of both the baits. Think your options over, start looking for jobs and you might even get an employment that offers both!

Related Article:  PCB Manufacturers - What Should You Know?