“Base salary,” also known as “base pay,” is the fixed amount of money paid to an employee by their employer in exchange for their work. This amount does not include additional compensation such as bonuses, overtime pay, benefits, or any other perks or allowances. The base salary is usually expressed as an annual figure, although it can also be calculated on a monthly, weekly, or hourly basis, depending on the employment agreement.
Key points about base salary:
- It is the guaranteed minimum amount of money an employee will earn.
- It is often the primary component of an employee’s total compensation package.
- It serves as the basis for calculating other forms of compensation, such as overtime and bonuses.
- It is typically negotiated at the time of hiring and can be subject to periodic reviews and adjustments based on performance, inflation, or other factors.