Annual Salary
A compensation scheme that pays an employee a fixed amount each year regardless of exact hours worked.
Salaries suit roles measured by responsibility rather than by hours, such as management and professional positions.
Often Confused With
- Hourly Wage
- A salary is a fixed yearly amount; an hourly wage multiplies a rate by hours worked, so it changes every pay period.
Taught In
See Also
4.1.D.2