What is Base Wage Rate? | Meaning & Definition | Akrivia HCM

Base pay is the most common pay rate, and it refers to the income an employee receives before any benefits, taxes, or bonuses. Your total compensation may increase from your base wage rate through incentives or performance-based increases. The salary can be calculated based on hourly, weekly, monthly, and yearly.

The base pay varies in different industries and professions based on the job position, cost of living, experience, and location.

A salaried employee is a permanent employee and has a set amount of pay they receive in each pay period. Some companies do not need employees on fixed salaries to keep track of their hours but set an expected number of hours that they should work.

Advantages of base pay:

• Financial Security: Working a base salary means you can be sure of a steady paycheck.
• Stable Job: It offers positions for the long term.
• Training: Adding training in the position can help you to up-skill yourself.
• Expense reimbursement: Base pay-based positions give mileage expenses, reimbursement, and cell phone bills.
• Profits: Most paid jobs offer health insurance benefits as a part of the pay package.