What is a Base Salary?
A base salary is a fixed amount of compensation that an employee receives for performing their job responsibilities, excluding any additional bonuses, commissions, or benefits.
It is the core amount that an employee can expect to receive in their paycheck before any deductions or additions.
Base salary is typically determined by factors such as the employee's role, experience, industry standards, and the company’s compensation structure.
The approximate salary ranges in UAE are:
- Entry-level positions: AED 5,000 to AED 15,000 per month
- Mid-level positions: AED 15,000 to AED 40,000 per month
- Senior-level positions: AED 40,000 and above per month
The approximate salary ranges in Saudi Arabia are:
- Entry-level positions: SAR 3,000 to SAR 12,000 per month
- Mid-level positions: SAR 12,000 to SAR 30,000 per month
- Senior-level positions: SAR 30,000 and above per month
Is the Base Salary the Same as the Basic Salary?
Base salary, base pay, or basic salary are essentially the same thing. They refer to the fixed amount of money an employee is paid by their employer before any additional bonuses, commissions, or allowances are added or deductions are made, typically regularly (e.g., monthly or annually) as specified in the employment contract. The basic salary is agreed on before the start of the employment contract.
How to Set a Base Salary?
Setting an appropriate base or basic salary involves careful consideration of many factors including the market salary benchmarks for similar roles, qualifications and experience levels, budget constraints, performance metrics, and legal and regulatory compliance.
Employers can assess the pay bands and salary ranges, be open to negotiations, and review market rates for a fair salary. It is crucial to attracting and retaining top talents, whereas it also demonstrates the company’s values.
