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Salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. general rule for comparing periodic salaries to hourly wages is based on a standard 40 hour work week with 50 weeks per year (minus two weeks for vacation). (Example: $40,000/year periodic salary divided by 50 weeks equals $800/week.
An annual base salary is a fixed income structure with regular paychecks throughout the year. Some people receive their entire earnings through a base salary, while others receive a base salary with additional types of incentive pay.hen your base salary is your only income stream, you are a part of a straight salary income structure. Relative to other pay structures, a primary benefit of a straight salary is consistency and stability. Regardless of your work performance, results or outcomes, you get the same income at each payroll distribution.