what is base pay

Base pay, also known as base salary or basic salary, is the fixed amount of money that an employer agrees to pay an employee in exchange for services performed and time spent working on the premises. It is the initial compensation amount or wage agreed upon by the employer and employee at the start of a job before taxes and other deductions. Base pay is most often expressed as an hourly rate, monthly income, or annual salary. It does not include benefits, bonuses, raises, or other forms of compensation. Base pay can be expressed as an hourly rate or as an annual salary. When looking at remuneration for a job, base pay is the minimum that the employee expects from the position. It is important to understand base pay as part of overall compensation packages when employees consider a job offer or negotiate a raise.