Zone pay is determined by the difficulty or risk of a particular job rather than by geographic location. For instance, an employee may be compensated at a higher rate than an employee who works in a less hazardous environment. The purpose of this system is to compensate workers for the increased risk they face in their work.
Construction, mining, and manufacturing are just a few of the industries where the zone pay system is frequently utilized. By offering higher pay for work that is more difficult or risky, employers can attract and keep skilled workers. Zone pay can likewise be utilized related to other compensation frameworks, like time-based compensations or pay rates.