GLOSSARY

What is a salary?

Updated: December 3, 2024

Salary definition and meaning

A salary is a fixed and regularly recurring wage, or compensation for work performed on behalf of an employer.

More about salary

While a salary can be any type of regular payment made to an employee, it’s most commonly used when referring to the total annual compensation paid to exempt, non-hourly employees. Salary can also refer to the exempt, non-hourly employee, themselves, as when differentiating between salary employees and hourly employees.

Using salary in a couple of sentences

“My annual salary is $52,000 a year.”
“She isn’t eligible for overtime because, she’s salary.”

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