Meaning & use

loyalty pay

noun·Advanced

Last updated

UK/ˈlɔɪəlti peɪ/
US/ˈlɔɪəlti peɪ/

Meanings

  1. noununcountablebusiness

    Extra money an employer gives a worker for staying with the company for a long time.

    Grammar: Used without 'a' or a plural: 'Loyalty pay is common in Japan.' Not 'a loyalty pay'.

    Patterns

    • loyalty pay for something
    • receive loyalty pay
    • be on loyalty pay

    After ten years at the firm, she started receiving loyalty pay on top of her salary.

    The union asked for loyalty pay to reward staff who stay for more than five years.

    Loyalty pay is not taxed in some countries, which makes it more attractive.

  2. noununcountablebusiness

    A regular payment made to someone because they keep buying from the same company.

    Grammar: Used for customer rewards, not only workers; still uncountable.

    Patterns

    • loyalty pay to someone
    • earn loyalty pay
    • loyalty pay scheme

    The airline gives loyalty pay to frequent flyers in the form of free upgrades.

    Some credit cards offer loyalty pay as cash back each year.

    Retailers use loyalty pay to keep customers from switching to competitors.

Common combinations

receive loyalty pay
Employees receive loyalty pay after five years of service.
loyalty pay scheme
The company introduced a loyalty pay scheme to reduce staff turnover.
be entitled to loyalty pay
Part-time workers are also entitled to loyalty pay under the new contract.
loyalty pay for long service
The bonus is described as loyalty pay for long service.

Synonyms and how they differ

long-service bonus
A more common term in British English for a one-off or annual payment for staying; loyalty pay can be more regular.
retention bonus
Usually a single payment to stop someone leaving, not an ongoing reward for loyalty.
seniority pay
Based on years worked rather than loyalty alone, and common in US union contracts.

Word family

loyal adjective
Showing firm support for a person, group, or company.
loyalty noun
The quality of being loyal.
loyalist noun
A person who remains loyal to a leader or cause.

Commonly confused: loyalty pay or loyalty bonus? loyalty pay or loyalty program?

loyalty pay vs loyalty bonus

Often the same idea, but 'bonus' suggests a one-time extra payment, while 'loyalty pay' can be a regular addition to wages.

loyalty pay vs loyalty program

A scheme that rewards customers, not workers; 'loyalty pay' usually refers to money, not points or discounts.

Practice

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