What is "salary pay"?

"Salary pay" means a person is paid an annual income through the course of regular paycheck installments. With a salary, regular paychecks are for a predictable and constant amount. This approach contrasts incentive pay structures, where pay is tied in some way to performance.

Salary pay structures vary. Typical installments are weekly or semi-weekly, though some companies issue monthly paychecks. On a semi-weekly salary structure, an employee receives paychecks on the same day every other week. Another format is bi-monthly, where pay is distributed twice per month. Each paycheck of regular salary income normally has deductions withheld for local and federal tax obligations.