<i>Dear Workforce</i> Salaries vs. 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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