Salary refers to the compensation rewarded by an organization to an employee for his work. Salaries vary given company type, job type and type of work an employee provides. Base salary and starting salary represent two different types of compensation.
Starting Salary
Starting salary represents the pay rate that an employee starts at upon her initial hiring by a company. Starting salary fluctuates due to the factors that include cost of living, including geographic area, population density and standard of living. Like base pay, starting salary may not include performance-based bonuses; it does, however often include a benefits package including employer contributions to health insurance and 401k.
Base Salary
Base salary refers to the main compensation offered to an employee prior to the addition of ancillary performance incentives, bonuses or other allowances and reimbursements. Base salary is often used as a barometer to calculate the rate of other standard inclusions, such as employee deductions for health and life insurance premiums. Base salary is also independent of company-wide salary additions, including profit sharing, company 401k contributions, as well as food, travel and lodging expenses.
Hourly Rate
Salaried employees receive their starting salary and base salary regardless of hours on the job, unless particular incentives are included in a hiring contract that grant a salaried employee overtime wages. This differs from those employees who are non-salaried and work for an hourly rate. Hourly rate jobs are most common in retail and manufacturing settings.
Factors Affecting Salary Type
Starting salary rates are customarily reserved for new hires such as those in entry-level professional positions as well as for those entering a particular profession or workforce for the first time, such as after a career change or lengthy volunteer or military service. Base salaries are predominantly found in professions that reward employees primarily on performance results, such as sales, entertainment and professional athletics.
Tags: Base salary, Salary Starting, Starting salary, Starting Salary, type type
