What is Salary?

Updated on March 1, 2022

  1. OnPay
  2. Payroll Software
  3. Terms and Definitions
  4. Salary

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.”

Terms related to Salary

Top-rated payroll


Your first month’s on us

Just share some basic information, then we’ll set everything up and import your employees’ information for you. It couldn’t be easier.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.