Legal Definitions - salary

A salary is a fixed amount of money that an employee receives regularly for their work, typically paid on an annual basis but distributed in regular installments (such as bi-weekly or monthly). Unlike hourly wages, a salary is generally not tied to the exact number of hours worked but rather to the fulfillment of job responsibilities, often for professional or managerial roles. This type of compensation provides a predictable and consistent income.

Accrued salary refers to the portion of an employee's salary that has been earned through their work but has not yet been paid out by the employer.

Here are some examples to illustrate the concept of salary:

• Example 1: Software Development Manager

  A software development manager at a technology company is offered an annual salary of $120,000, paid bi-weekly. This means that every two weeks, they receive a consistent payment of approximately $4,615, regardless of whether they worked exactly 40 hours or slightly more or less in a given week. Their compensation is based on their overall contribution and management of the development team, not on an hourly rate.

  This illustrates salary because the manager receives a predetermined, regular payment for their professional services, which is consistent over time and not calculated based on the specific hours logged each day.

• Example 2: University Professor

  A tenured professor at a university earns an annual salary of $95,000, which is disbursed monthly over 12 months. This fixed income covers their responsibilities for teaching courses, conducting research, advising students, and participating in university committees. Their pay does not fluctuate based on the number of lectures given in a particular week or the hours spent grading papers.

  This demonstrates salary as the professor's compensation is a stable, regular amount paid for their ongoing professional and academic contributions, rather than being tied to an hourly count of their teaching or research activities.

• Example 3: Marketing Director for a Non-Profit

  The marketing director for a national non-profit organization receives a yearly salary of $70,000, paid semi-monthly (twice a month). This consistent payment allows the director to focus on developing and executing long-term marketing strategies and campaigns to support the organization's mission, without needing to track their hours for payroll purposes.

  This example highlights salary because the director's compensation is a fixed, regular amount provided for their specialized professional services to the non-profit, ensuring a predictable income stream that supports their strategic role.