What is Fixed Pay?

Fixed pay, or fixed salary, is the predefined and fixed amount paid to an employee by the employer at the end of every payroll cycle. Fixed pay includes all remuneration guaranteed by the company, most commonly in the form of a monthly or annual salary.

Additional contributions to things like medical insurance, a retirement fund, or allowances (car, house, etc.) may or may not be included in fixed pay, depending on the company policy and/or employment agreement. 

The term ‘fixed’ indicates the same amount is paid to an employee on a regular basis, irrespective of hours worked or the quality of work performed.