Tom has just taken his first full time job with a salary of $58,000.He knows that he should plan his personal recurring expenses,such as rent and car payments,around this amount because it is his
A) total compensation.
B) total reward package.
C) base pay.
D) living wage.

Question

Quizplus · Accepted Answer

Base pay refers to the salary that an employee receives for their standard work hours without including any additional benefits or bonuses. As Tom's salary is his base pay, he should plan his personal recurring expenses around this amount. Option A is incorrect because total compensation includes bonuses, benefits, and any other forms of payment beyond the base salary. Option B is incorrect because total reward package also encompasses non-monetary rewards such as recognition or flexible working arrangements. Option D is incorrect because a living wage is the minimum amount necessary for a person to cover their basic expenses and maintain a decent standard of living. It is not tied to an individual's specific salary.

Tom Has Just Taken His First Full Time Job with a Salary