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Annual Salary
Definition
Annual salary is the total amount an employee is paid per year for their work, typically divided into regular pay periods.
Explanation
Annual salary is the standard way to express full-time compensation for exempt employees. Common pay periods include monthly, semi-monthly (24 payments), and biweekly (26 payments). The annual salary remains fixed regardless of hours worked, within reason.
When comparing job offers, look at total compensation including bonus potential and benefits value, not just the base annual salary figure.
Example
A $72,000 annual salary paid biweekly results in $2,769.23 per paycheck before deductions.