1. Finance
  2. Employee & Payroll

Average Employee Salary

Money

The mean salary paid to employees. Helps in benchmarking compensation against industry standards, ensuring that the organization remains competitive in attracting and retaining talent.

Formula

(Total Salary Expense / Number of Employees)

Example

If the total salary expense for 50 employees in a group is $2,500,000 annually, the average employee salary would be $50,000.