Rivermate | Product owner - Andrew Simon

Global Work Glossary

Who qualifies as a salaried employee?

Salaried employment represents a fundamental aspect of the workforce, offering stability, benefits, and career growth opportunities. Here's a comprehensive overview:

Payment Structure

Salaried employees receive a fixed annual salary negotiated during hiring, which is divided into regular pay periods. For instance, an employee with an $85,000 annual salary may receive $7,083.33 per month or $3,541.67 semi-monthly.

Salaried employees in the United States are subject to federal laws dictating payday requirements, varying by state. They are generally considered exempt from overtime pay and minimum wage regulations under the Fair Labor Standards Act (FLSA).

Comparison with Hourly Employment

  • Pay Structure: Salaried employees receive predetermined pay, while hourly workers earn wages based on hours worked.
  • Exempt vs. Non-Exempt Status: Salaried workers are typically exempt from overtime pay, unlike hourly employees who are often eligible for overtime.
  • Timesheets: Salaried employees typically do not complete timesheets, unlike hourly workers who track hours worked.
  • Work-Life Balance: While schedules vary, salaried employees tend to work consistent hours, fostering a better work-life balance compared to some hourly workers with fluctuating schedules.

Pros and Cons


  • Financial Security: Salaried positions offer a consistent income, aiding financial planning.
  • Employee Benefits: Access to benefits like healthcare, retirement plans, and paid time off enhances overall compensation.
  • Career Growth: Salaried roles often come with opportunities for advancement and higher compensation.


  • Overtime Pay Exemption: Salaried employees typically do not receive overtime pay, despite potentially working long hours.
  • Intensive Workloads: The expectation to complete tasks regardless of time spent can lead to long work hours.
  • Cost to Employers: Hiring salaried employees involves higher costs for employers due to benefits and taxes.

Examples of Salaried Jobs

Salaried positions span various industries and roles, including management, education, marketing, engineering, and more. Examples include account executives, teachers, marketing coordinators, civil engineers, and beyond. In essence, salaried employment offers stability, benefits, and opportunities for career growth, though it may not suit every individual's circumstances or preferences.

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