Salary

Salary is the compensation paid by an employer to an employee in exchange for labor, typically expressed as an annual amount and delivered in regular installments such as monthly or biweekly pay. Unlike hourly wages, salary is often set as a fixed sum for a period (often a year) and may be accompanied by additional forms of compensation.

Most salary arrangements do not depend on hours worked, though exceptions exist for non-exempt roles and for overtime or performance-based bonuses. Components include base salary, bonuses, incentive pay, equity-based compensation, and benefits such as retirement contributions, health insurance, and paid leave.

Several factors influence salary levels: occupation, industry, geographic location, education, experience, and demonstrated skills; company size and profitability; and market demand, which can shift with time and economic conditions. Salaries are often set within a range or band and can be negotiated at hire or during reviews; salary transparency varies by organization and jurisdiction.

Salary planning and negotiation: candidates research market benchmarks using salary surveys and cost-of-living data; consider total compensation rather than base pay alone. During negotiations, emphasis on target range, timing, and alternative compensation (equity, bonuses, flexible work) is common.

Legal and social context: salary levels are subject to laws on minimum wage and overtime; pay equity concerns address gender and other disparities. Trends include greater salary transparency in some regions and the use of pay bands and performance-based pay to align compensation with value delivered.