Sales employees receive a form of performance-based compensation known as a sales commission based on the amount of sales revenue, they bring in. In the United Arab Emirates, the Gulf Cooperation Council, and the Kingdom of Saudi Arabia, sales commissions are a common means of rewarding sales employees for exceeding company goals and increasing sales revenue. The nature of the business, the kind of product or service sold, and the company's sales target can all affect how much employees receive in commission.
Local labour laws and regulations must be adhered to by employers' sales commission policies. For instance, employers in the United Arab Emirates are required to have a written sales commission policy that specifies the commission's terms and conditions, including the method of calculation, payment frequency, and eligibility requirements. It is essential to keep in mind that the sales commission is required to be paid to the employee within the allotted time frame because it is regarded as a component of an employee's wages.