what is base pay 
base pay is the initial salary paid to an employee not including any benefits bonuses or raises it is the rate of compensation an employee receives in exchange for services an employee s base pay can be expressed as an hourly rate or weekly monthly or annual salary understanding base paybase pay does not include all forms of compensation for instance shift differential pay on call pay special assignments and incentive based pay are typically excluded from base pay generally an employee s base pay is the minimum amount they should expect to receive during a specified pay period excluding additional financial or tangible compensation that may increase the total pay above this level in contrast to hourly employees who are compensated for the exact number of hours they work in a pay period a salaried employee is usually expected to work a minimum number of hours in exchange for their base pay some companies do not require salaried employees to keep track of their hours many workers who receive a base salary are exempt from federal labor laws governing overtime compensation 1 consequently they do not receive overtime pay if they work more than the minimum hours required by the employer some positions may necessitate working significantly more hours than the typical 40 hour workweek some salaried employees that make less than 35 568 are entitled to overtime pay for any hours worked over 40 during a week 1base pay vs annual paywhile base pay excludes supplemental compensation received in employment annual income takes into account actual earnings over the year annual pay may be significantly higher than the base pay including bonuses overtime benefits or awards annual pay also factors in any amounts paid by an employer for a worker s medical dental and life insurance policies the sum of these premiums is added to the base rate and other forms of compensation such as overtime or bonuses to calculate the amount of pay received in a calendar year special considerationsbase pay rates vary significantly between professions in general professions requiring advanced education and specialized skill sets pay higher base rates than jobs requiring basic skills in competitive fields employers often offer attractive base pay rates to recruit highly qualified applicants in addition to paying high base salaries companies may woo prospective employees with additional perks including a generous benefits package retirement plan bonuses investment options and tangible rewards such as a company vehicle or paid leisure travel these extras can substantially increase a company s likelihood of hiring and retaining top notch personnel 