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The current version of the vocabulary builder covers over 2720 words & is useful for students preparing for academic English examinations such as SAT, GRE, GMAT, etc. Now you can also listen to the pronunciation of words. - Refer a Friend.

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incentive (noun) encouragement, motive, stimulus.

Something that encourages a person to do something is an incentive. The commission that a salesperson gets in addition to their salary on their sales is an example of an incentive, because the commission encourages the salesperson to canvass more and sell more. The bonus the workers in an industry are paid is an incentive as it encourages them to work better and be more productive so that their bonus may be more. Higher demand for their products is an incentive for the producers, because they can earn profits. Higher farm prices for farm products are an incentive for farmers, because the higher prices encourage them to produce more.

  • The government’s exemption of savings above a certain level acts as an incentive for people to save.
  • One only wishes that there were incentives for people to save fuel, especially petrol and diesel, as they are being used up very fast.
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Last Modified : 11-May 2009
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