Salary Pay

Salary pay is a fixed amount of compensation an employee receives for a defined period, commonly expressed as an annual amount and paid in regular installments.

A salary provides a consistent base amount from pay period to pay period, but it does not automatically determine whether an employee is exempt from overtime. Employers still need to apply wage-and-hour rules based on the employee’s duties, pay basis, and other requirements. Payroll converts the annual or periodic salary into the amount due each pay period.