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A salary is a form of payment from an employer to an employee, which can be specified in an employment contract. It is contrasted with the piece rate wage, where each job, hour or other unit is paid separately, rather than periodically. From a business management point of view, salary can also be viewed as the cost of acquiring and retaining human resources to run operations, and is later called personnel expense or salary expense. In accounting, wages are recorded in payroll accounts.
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Salary is a fixed amount of money or compensation paid to an employee by an employer in exchange for work performed. Salary is commonly paid in fixed intervals, for example monthly payments of one twelfth of the annual salary.
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Salary is generally determined by comparing market pay rates for people doing similar work in similar industries in the same region. Salary is also determined by leveling the pay rates and salary ranges established by an individual employer. Salary is also affected by the number of people available to perform the specific job at the employer’s workplace.
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While there is no first pay stub for the first exchange of work for pay, the first wage labor would have required a society advanced enough to have a barter system that would allow for the uniform exchange of goods or services between merchants. More significantly, it presupposes the existence of organized employers — perhaps a government or a religious body — that would facilitate contract labor exchanges on a regular enough basis to constitute wage employment. From this, most infer that the first salary would have been paid in a town or city during the Neolithic Revolution, sometime between 10,000 BC. C. and 6,000 a.c.
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