salary

(noun)

A fixed amount of money paid to a worker, usually measured on a monthly or annual basis, not hourly, as wages. Implies a degree of professionalism and/or autonomy.

Related Terms

  • perquisite

Examples of salary in the following topics:

  • Monetary Employee Compensation

    • The basic element of guaranteed pay is the base salary, paid on an hourly, daily, weekly, bi-weekly, or monthly rate.
    • Many countries dictate the minimum base salary by defining a minimum wage.
    • In addition to base salary, other pay elements are based solely on employee/employer relations, such as salary and seniority allowance.
    • Salaries and wages are tied to a job description that lays out the expectations and responsibilities of an employee.
    • Employees who are performing particularly well during a year may receive an additional bonus that is above their base salary or commission percentage.
  • Forms of Financial Compensation

    • A salary is a form of renumeration paid periodically by an employer to an employee, the amount and frequency of which may be specified in an employment contract.
    • From a business point of view, salary can be deemed as the cost of acquiring human resources for running operations and is then termed personnel expense or salary expense.
    • In accounting practice, salaries are typically recorded in payroll accounts.
    • Today, the idea of a salary continues to evolve as part of a system of all the combined rewards that employers offer to employees.
    • Explain each part of a total rewards system including salary, benefits, incentive pay, and an employee stock option (ESO)
  • Employee Promotions

    • A promotion is the advancement of an employee's rank, salary, duties, and/or designation within an organization.
    • A promotion is the advancement of an employee's rank, salary, duties and/or designation within an organization.
    • A promotion can (and often does) mean an increase in salary.
    • In the private sector, promotion can include substantial salary increases, benefit increases, stock options, and various "perks," such as a bigger office or executive parking.
  • Transforming data (special topic)

    • Consider the histogram of salaries for Major League Baseball players' salaries from 2010, which is shown in Figure 1.28(a).
    • The histogram of MLB player salaries is useful in that we can see the data are extremely skewed and centered (as gauged by the median) at about $1 million.
    • For instance, a plot of the natural logarithm of player salaries results in a new histogram in Figure 1.28(b).
    • (a) Histogram of MLB player salaries for 2010, in millions of dollars.
    • (b) Histogram of the log-transformed MLB player salaries for 2010.
  • Financial Rewards for Managers

    • A sales role often features a contractual agreement that stipulates a certain percentage of a given representative's sales contribute to that sales rep's own salary.
    • Managerial roles can function similarly to these pay-for-performance jobs, where the success of the company (or department) will directly affect the salary of the manager.
    • CEO pay growth compared to employee salaries, U.S. gross domestic product, and overall U.S. corporate profits
    • CEOs, as primary examples of upper managerial salary, receive high salaries in comparison to other gross income indicators.
  • Compensation and Competition

    • Candidates often require a compensation package that includes benefits as a perk for employment, and may pass on a position with a higher salary if a competitor is offering a lower salary and a benefits package.
    • On one hand, a high base salary and a lucrative benefits package can help an organization keep and retain high-quality employees.
    • Employers think about the total compensation cost of employees and that calculation considers what they pay in health insurance premiums, in addition to salaries and wages.
    • Health insurance premiums are thus a cause of salary and wage growth stagnation for much of the population in the U.S.
  • Employee Compensation and Benefits

    • The most common form of guaranteed pay is the basic salary.
    • The basic element of guaranteed pay is the base salary, paid based on an hourly, daily, weekly, biweekly, or monthly rate.
    • The base salary is typically used by employees for ongoing consumption.
    • Many countries dictate the minimum base salary by stipulating a minimum wage.
    • In addition to base salary, there are other pay elements that are paid based solely on employee/employer relations.
  • Promotions

    • A promotion can involve advancement in terms of designation, salary, and benefits.
    • The amount of salary increase associated with a promotion varies between industries and sectors, and depends on what parts of the hierarchical ladder an employee is moving.
    • In some industries or sectors, there may be only a modest increase in salary for a promotions; in other fields, a promotion may substantially increase an employee's salary.
    • In some industries, the promotion only changes the title and salary, and there are no additional benefits or privileges (beyond the psycho-social benefits that may accrue to the individual).
    • In some not-for-profit organizations, the values of the organization or the tightness of funding may result in there being only modest salary increases associated with a promotion.
  • Pay for performance

    • Companies should have well-designed base salaries.
    • Depending on work performance, many companies reward their employees without affecting base salary.
    • Some US companies select to announce salary ranges.
    • For example, for each position American Express posts the market pay ranges so that its employees can compare them with their salaries.
    • Some companies disclose the formula and the factors they may use to calculate salaries, such as education and experience.
  • How Income is Allocated

    • Recent growth in overall income inequality has been driven mostly by increasing inequality in wages and salaries.
    • Recent growth in overall income inequality has been driven mostly by increasing inequality in wages and salaries.
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