Base Pay

Base pay, also known as a base wage rate is the salary or agreed-upon rate that a company pays an employee before deductions or incentives. Overtime, bonuses, taxes, or benefit deductions are not included in this.

Base pay of an employee depends upon their experience, industry, geographical location, and education. An employee may get an hourly rate or a fixed salary which may be negotiated at hiring and are stipulated in a contract of employment. 

Compensation management software is sued by companies to create and manage salary packages for their employees. HR teams can determine fair and equitable base pay and bonus structures by using this software as it provides an at-a-glance dashboard view for data visualization.

Base pay of employees can vary depending on where they work or live even if an employee stays in the same type of role. Location, labor market, industry, specific employer, education or training, and experience are different factors influencing base pay. 

Companies can serve employees in a fair, consistent way, achieving HR clarity and confidence with a solid pay structure. Attracting and retaining employees, increasing efficiency, avoiding discriminatory practice and assuring compliance are some specific benefits of creating base pay minimums.

Companies need to think long-term, conduct market research, be upfront and select the right tool to set accurate and competitive wages.