Minimum base salary is a term used when an organization's pay schedule includes ranges for each position. For example, if a company advertises a marketing position with a salary range of $40,000 to $47,000, the minimum base salary is $40,000. A job applicant knows that he'll be paid at least that amount.
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When companies list a pay range, they typically base the salary offer on a candidate's education and background. A candidate with minimal experience is more likely to get the minimum salary compared with someone with significant experience. A primary reason companies include minimum base salaries is to protect workers from discrimination or unfair compensation. When applicable, unions often negotiate salary minimums with management.
