Base Pay Definition

Base pay is an employee’s regular and recurring pay, excluding extra compensation such as bonuses, awards, overtime, incentive pay, and pay for on-call time.

Base Pay Extended Definition
Base pay is a fixed amount employers pay out regardless of an employee’s performance and ability to meet goals. This is the initial pay you give employees and includes salary or hourly wages, plus shift differentials.

Some employers supplement base pay with incentives or commissions to encourage employees to meet objectives. Base pay plus additional compensation, like commissions, is known as an employee’s total compensation.

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What Is Variable Pay, and How Exactly Does it Work?

Last Updated By

Rachel Blakely-Gray | Feb 15, 2023

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