What is Base Pay?

Base pay, also called basic salary or base salary, is a fixed amount that employers pay their employees in exchange for services performed and time spent working on the premises. This pay is agreed on before the start of the employment contract. The compensation is often expressed as an hourly rate, monthly or annual salary.

Most employment contracts include additional benefits and earnings, such as overtime pay, commissions, tips, bonuses, or vacation payments. These are not included in the core pay. Therefore, it is safe to say that the basic pay is only a part of the employee’s total compensation.

When looking at remuneration for a job, base pay is the minimum that the employee expects from the position. In most cases, the company will explain the number of hours the candidate is expected to work and other terms they should meet to receive the basic pay.