A base salary is the amount agreed between employer and employee as remuneration for work performed. It is specified in the employment contract. The base salary cannot be lower than the minimum wage set by law.
What Is the Difference Between Base Salary and Gross Salary?
The sum of money paid by an employer in exchange for the work performed by an employee is the salary. It can be broken down into three categories: base salary, gross wages and net salary.
Base salary is the amount specified in the employment contract. Gross salary includes base salary, additional amounts received in the course of work such as overtime, bonuses, commissions, tips and paid leave, as well as in-kind benefits such as housing.
What Are the Different Types of Salary?
Types of salary include:
- Base salary
- Time-based pay
- Tipped wages
- Commission wages
- Piecework pay
- Performance-based pay