Base pay is the bare minimum salary paid to an employee for a certain role. The base pay amount is usually determined by an employee's skill level, the position they are applying for, and the guidelines set by the company's Human Resources department.

The base pay is just one component of an employee's total compensation. It is supplemented by other salary components such as commissions, fringe benefits, bonuses, dividends, insurance and overtime pay. The base pay amount is also devoid of any deductions. On average, a base pay makes up for about 40-45% of an employee's total salary package.