põhipalga

Põhipalga, often translated as base salary or basic pay, refers to the fixed amount of money an employee receives for performing their job duties. It is the fundamental component of an individual's total remuneration and does not include variable elements like bonuses, overtime pay, or allowances. In Estonia, põhipalga is a legally recognized term and a crucial aspect of employment contracts.

The determination of põhipalga is typically based on factors such as the employee's qualifications, experience, the complexity of their role, and the prevailing market rates for similar positions. It serves as a baseline upon which additional compensation may be built. Employers are legally obligated to clearly state the põhipalga in the employment contract, along with the payment schedule and any other relevant terms. This ensures transparency and provides employees with a clear understanding of their guaranteed earnings.

Põhipalga is distinct from total salary, which encompasses all forms of compensation. For instance, if an employee has a põhipalga of €1000 and also receives €200 in overtime pay and €100 as a performance bonus, their total salary for that period would be €1300. Understanding the difference between põhipalga and total remuneration is important for both employees and employers when discussing compensation packages and financial planning. It represents the core value placed on an employee's regular work.