Base salary

Base salary is the fundamental component of an employee's compensation package, representing the minimum amount of pay they will receive before tax deductions or any additional compensation. It's typically determined on an annual basis but can also be provided on a weekly, bi-weekly, monthly, or daily basis.

While base salary is highlighted in a job offer, it's just one part of an employee's total compensation package, which may include additional earnings, benefits, paid time off, and other perks provided by the employer.

Base pay differs from annual pay, also known as gross pay, which considers all factors such as overtime, bonuses, commissions, and benefits. Therefore, an employee's annual salary may vary significantly from their base pay due to these additional elements.

Hourly pay, on the other hand, is what employees are paid per hour worked, and their total compensation depends on the number of hours worked and the hourly rate. Salaried employees, however, receive a fixed amount of compensation based on their annual base salary.

Calculating base salary involves subtracting bonuses, commissions, overtime, and other additional earnings from the total annual pay. Alternatively, for hourly employees, base salary can be calculated by multiplying the number of hours worked per week by the hourly wage and the number of weeks in a year.

It's essential to consider various factors such as location, industry, seniority, job title, cost of living, and required skill sets when determining base salary, as these factors can significantly impact the salary and overall compensation package.

Ultimately, offering a competitive base salary is crucial for attracting and retaining top talent, and tools like Helios's Salary Insights can help employers determine the average salary for a particular role in any country, facilitating informed hiring decisions.