This is especially useful for jobs where your base salary only tells a small part of the story. For instance, those with several dependents on their health plan, or a salesperson who can expect a steady income from commissions. LinkedIn Salary. The top professional networking site in the world naturally has a lot of salary data on hand. It also provides useful data on common perks and benefits. While base pay only accounts for the minimum monetary compensation you receive in exchange for work, annual pay involves a whole lot more.
Remember all those goodies we excluded from base pay in the section above? Things like tip income, bonuses, commissions, overtime, stock options, recognition pay, and a K matching plan are easier to assign a dollar value to. But you may have to dig a little deeper to figure out the value of insurance premiums, paid time off , and other non-cash benefits, like the use of a company car. Our resume builder tool will walk you through the process of creating a stand-out Architect resume.
Base pay can be expressed hourly, monthly, or annually. If you are an hourly employee, then your base pay will be your hourly wage. There are pros and cons to being a salaried employee and an hourly employee. As you can see, an hourly employee must keep track of his or her hours and may receive overtime when working more than 40 hours a week. This means that, while hourly base pay is consistent, an hourly employee cannot fully chart out their monthly or annual pay.
Salaried employees do not need to keep track of their hours worked and receive flat base pay, regardless of work completed. While that might sound like a plus, it can also mean that a salaried employee might work more than 40 hours in a given week without receiving extra compensation for it. Base pay is just one element of your compensation package.
Every situation and every employee is different. Depending on your situation, you may value certain benefits, such as having your family members covered by your health insurance, more highly than others. While base salary is a very important component of your compensation package, and thus your decision to take a job or not, remember that it is not the sole component.
Take the time to research what other elements of your compensation package are worth, both in the market and for your specific situation. Negotiating your base salary when starting a new job is one of the most important things you can do.
All of your future raises will be determined based on this starting number — the higher you start, the higher you end up later in your career. But if you do opt to negotiate your salary , keep these tips in mind:. Do your research. Gross income is the amount earned based on your base salary and additional financial bonuses.
Net income is the amount left once relevant deductions have been made such as tax and health insurance. Gross income is a strong indicator of the rewards offered for a certain role, but the term only applies to financial benefits.
Many jobs offer benefits outside of financial rewards. All elements combined—including your base salary, gross income, and other bonuses—create what is known as a compensation package. A compensation package is an overall break-down of all benefits and income offered by your employer.
Typical benefits include:. Referral bonus : Money paid for referring someone you know for another role in the same company. Gift : Such as tickets to concerts or gift vouchers rewarded for hard work or consistency. Profit sharing : offering employees a percentage of any profit the company makes overall. In fact, certain additional benefits could have huge value away from direct monetary payments. Companies are increasingly caring for employees wellbeing and mental health, with job offers potentially including attractive wellness plans, from discounted therapy or coaching, to free gym-memberships.
The value of such benefits adds to quality of life, away from office hours. Assessing benefits outside of direct cash compensation is worthwhile; for example, a job may offer a lower base salary but allow for flexible working hours and remote work. Last but not least, once clear on your salary, it helps to compare your value against the current market. The majority of nations in the EU have legislation ensuring a minimum base salary; known as the minimum wage. Any employer paying less than the minimum wage in these countries is in effect breaking the law.
Minimum amounts vary from country to country, depending on cost of living and other factors. According to Eurostat, minimum wages for a typical hour week are:. Certain nations, including Italy, Sweden, Denmark, and Sweden, have no legal minimum wage. When searching for a new job or negotiating to raise your current base salary, it helps to know competitive salaries in your country of work.
For a general overview, average gross salaries in European capitals, reported by Numbeo, are:. Average salaries can be further categorized into average base salaries for specific job sectors. When comparing to these totals, take into consideration your experience, duration in the role, and any compensation packages offered. It usually includes the smallest pay rate, the highest pay rate, and a number of mid-range options for salary raises. The reason for this is that the desired skills become more difficult to find, and businesses increase base salary rates to hunt the talent they need and gain competitive advantage.
In the end, businesses want to create salary ranges that motivate their staff to contribute. They also want to attract and retain the best employees. Its website gives the employer salary research data for many different professions in multiple industries, as well as for people who work in various geographic areas. Many organizations participate in market surveys of salary ranges to form a reliable source for salary analysis. Nowadays, wage studies are happening online with the help of salary calculators and comprehensive info sources obtainable from such websites as PayScale.
These info resources give an employer an opportunity to see the base salaries range that specific positions are paid. Besides, it allows applicants to see identical information.
To retain excellent talent, most companies use all means to guarantee that base salaries they pay are reasonable and fair. We hope this information will help you manage payment and salary issues in your company in a way that increases staff motivation and builds rapport. We started looking for a solution, and we found Snov. What is Base Salary: definition and ways to determine it. Written by Lucy Smith from Snov. Last updated: September 7, Contents What is base salary?
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