Salary
Fixed annual payment to employee divided into regular (usually monthly) payments.
Formula
Monthly Pay = Annual Salary ÷ 12
Real World
A newly qualified teacher in England earns a set annual salary (around £31,650 in 2024), paid monthly regardless of hours worked — giving both predictability for the employee and stable staffing costs for the school.
Exam Focus
Contrast salary with piece-rate or commission pay when asked to 'compare' — always link payment method to business type and employee motivation.
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