Salary

Salary is a form of payment from an employer to an employee, which is specified in an employment contract. It is contrasted with piece wages, where each job, hour, or other unit is paid separately, rather than on a periodic basis. From the point of view of running a business, salary can also be viewed as the cost of acquiring and retaining human resources for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded on payroll accounts.

History of Salary

The concept of salary has been around since ancient times. In the Roman Empire, soldiers were paid a salary to ensure they were loyal to the emperor. In the Middle Ages, the Catholic Church paid its priests a salary to ensure they were loyal to the Church. In the 19th century, the Industrial Revolution brought about a shift in the way people were paid, with employers paying a fixed salary to employees instead of paying them for each task they completed. This shift allowed employers to have more control over their employees and to ensure they were working efficiently.

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Summary

Salary is a form of payment from an employer to an employee, which is specified in an employment contract. It is contrasted with piece wages, where each job, hour, or other unit is paid separately, rather than on a periodic basis. The concept of salary has been around since ancient times, and the Industrial Revolution brought about a shift in the way people were paid, with employers paying a fixed salary to employees instead of paying them for each task they completed. For more information about salary, you can visit websites such as Investopedia, The Balance, and Salary.com.

See Also

• Wages
• Hourly Pay
• Commission
• Bonus
• Overtime Pay
• Retirement Benefits
• Employee Benefits
• Payroll Taxes
• Employee Stock Options
• Employee Stock Ownership Plan (ESOP)

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