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lump-sum payments

Payments made to employees in lieu of a general wage rate increase. The payment may be a fixed amount as set forth in a labor agreement or an amount determined by a formula—for example, 2. 5 percent of an employee’s earnings during the prior year. Lump-sum payments are not incorporated into an employee’s base pay rate or salary, but are considered as nonproduction bonuses in the Employment Cost Index and Employer Costs for Employee Compensation series.

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