Salary
Fixed annual payment to employee divided into regular (usually monthly) payments.
Formula
Annual Salary ÷ 12 = Monthly Pay
Real World
A newly qualified teacher in the UK earns a set annual salary of around £30,000, paid in equal monthly instalments regardless of how many lessons they teach that month.
Exam Focus
When 'evaluating' salary, always contrast its cost predictability for employers against inflexibility during low-demand periods.
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