Base Salary

Base Salary is the term that refers to an employee's paid compensation, before incentive compensation is applied.  For newly hired employees, the base salary would not include features such as a sign on bonus or other monetary incentives.

An employee's base salary is the minimum annual money received, or the standard salary that an employee receives for doing a specific job.  It is also used to calculate other allowances, such as incentive compensation and employee benefits.  When an employee shares in the cost of benefits, such as life insurance or health insurance premiums, these items are payable from the base salary.