The Rate Category indicates the basis for the pay rate.
It provides users with a method for grouping rates and hours submitted against those rates. Basically, the rate category determines how much a worker will get paid both within and outside of the standard working hours.
You’ll commonly see rate categories represented in the accounting section of job postings, where you will be required to confirm the amounts that are associated to the categories for that specific job.
Rate Categories group rates together for use on job postings.