Salary

Salary is a type of wage paid, it is customarily a set sum of remuneration over a defined period of time. The most traditional form is a dollar amount over a period of one year paid in increments.

The Different Forms of Compensation

The Different Forms of Compensation

There are two different forms of compensation provided to employees; direct and indirect. Direct forms of compensation have a multitude of types or methods, from salaries to bonuses. Indirect compensation is primarily the various types of benefits and long term incentives. This article is an introduction to the terminology of compensation.

One of the forms of compensation is direct remuneration for services rendered by the employee.  The term used for this is wages.  It consists of four different groups of payment from the employer to the employee.  They are salary, hourly, commission and bonus types of wages.

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