Home HR Glossary Base Salary
Compensation

Base Salary

The fixed regular payment an employee receives, excluding bonuses and allowances.

Full Definition

Base salary is the core, fixed component of an employee's compensation — the guaranteed amount paid for performing their role, expressed as an annual figure or hourly rate. Unlike total compensation, base salary excludes variable pay such as bonuses, commissions, overtime, and benefits. Base salary is typically the starting point for total reward negotiations and is used to calculate statutory entitlements like overtime pay, maternity pay, and redundancy pay.

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