what is discretionary pay?

Answer 1

Cash in a brown envelope?

Answer 2

Hello there -
that is a labour law question.
In short there are multiple categories of compensation that can form part of an employment offer package. There is monetary and non-monetary compensation (i.e. health insurance, holidays, etc).
Discretionary pay clearly is cash compensation, therefore it falls in the first category (monetary).

Monetary compensation can be broadly divided into 2 groups - contractually agreed and discretionary compensation.
Contractually agreed is typically the salary, and sometimes a car or cash allowance. An employee is guaranteed to receive the contractually agreed compensation (or pay) for the duration of the employment.
Secondly there is discretionary pay, which is not contractually agreed. Typically this is bonus, stock options etc. Management tends to reserve the right to pay this type of compensation in full, in part or not at all in any given period. How much is paid out to the individual is usually depending on a variety of factors, including company overall performance, group and team performance, individual employee performance and (I am not being cynical here) how well the decision maker knows and likes one.

Answer 3

'Discretionary' is a word used to mean 'the choice of the person' ie. Pay that is given to en employee at the decision of the employer. This would mean the employee has no right to receive the amount, but might do, if the employer feels it is deserved. Examples of this are bonuses based on exceptional performance, Christmas bonuses, money given on the birth of a child etc. Any pay that is not stipulated in the contract.
Why not tell us your context, and we can be more specific?

Answer 4

It is pay that is paid at the discretion of your employer. Ie they dont have to pay you it, its up to them.
ie if you have a funeral to go to, it may state in your contract that you get discretionary pay. But they would only pay it say if it was a close relative, not if it was just a friend