What Does Base Pay Mean And Why Is It Important?
Abstract
About Base Pay When you are looking to take a mortgage to buy a new home or refinance your current mortgage, your lender will qualify you based on a few parameters like loan-to-value, Debt-to-income, and credit score. What Does Base Pay Mean? Base pay, also known as base salary or basic salary, is a specific amount of money paid by an employer to employees in exchange for work performed. What Is The Difference Between Base Pay And Total Gross Pay? Total gross pay refers to an employee's total compensation, including all bonuses, benefits, insurance, overtime pay, etc. The basic pay is the minimum fixed amount that an employee is compensated with for the type of work he or she does. In addition to base salary, other components of compensation are likely to vary from year to year because they are based on many factors, such as business revenue, division performance, individual employee performance, and so on. Who Receives The Basic Pay? Base pays are typically paid to professional or exempt workers. How Is Base Pay Calculated? The base salary is calculated based on the minimum wage rate per hour.
