Salary Computation
/ˈsæl.əˌrɪ kəmˌpjuːˈteɪ.ʃən/
Definitions
- (n.) The process of determining the amount of wages or remuneration an employee is entitled to for services rendered, calculated according to agreed criteria.
The company’s salary computation method ensures compliance with labor laws regarding minimum wage.
- (n.) The formula or system used in payroll to calculate an employee’s gross and net pay including deductions and benefits.
Accurate salary computation is essential for proper withholding of taxes and social security contributions.
Forms
- salary computation
- salary computations
Related terms
See also
Commentary
Salary computation must comply with applicable employment laws and contractual terms; clear documentation of the method used helps avoid disputes about pay.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.