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Dear Workforce Salaries vs. Compensation

Salary is usually used in a specific context, such as in reference to overtime rules.
January 7, 2001
Related Topics: Compensation Design and Communication, Dear Workforce, Compensation

Whatis the difference between "salary" and "compensation?" 

--Signed, dictionary isn’t helping 

A Dear Dictionary: 

Compensationis the process of directly and indirectly rewarding employees, on a current ordeferred basis, for their performance of assigned tasks. 

Salaryis the direct compensation paid on a regular time interval without aconsideration of any specific units of output; sometimes used to distinguishemployees (salaried) who are not covered by a collective bargaining agreement orin some cases, are exempt from the Fair Labor Standards Act. 

SOURCE:2000 U.S. Master Human Resources Guide, by Donald W. Myers, copyright CCH.


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 The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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