Contract Type:
Employment Agreement

The Employee's salary shall be [£AMOUNT] per annum payable monthly in arrears on or before the [DATE] of each month. The salary shall be reviewed annually and may be increased at the discretion of the Employer. There is no obligation on the Employer to increase the salary following any review.


This clause specifies the employee's salary amount and payment schedule:

- The yearly salary is £[AMOUNT] paid monthly.

- Salary is paid on or before [DATE] of each month.

- The employer will review the salary annually.

- The employer can decide to increase the salary after the review but is not obligated to.

In plain terms, it states the annual salary, that salary is paid monthly by [DATE], and that the employer will review it yearly and may choose to increase it.

History of the clause (for the geeks)

Historically, compensation terms in employment agreements tended to be vague or non-existent.

Unclear or missing pay rates led to worker disputes and compliance problems.

As employment law evolved, salary clauses emerged to define pay explicitly. This promoted understanding and helped avoid wage controversies.

Further language developed to outline payment schedules and timing. This provided transparency around pay dates, frequency, and regularity.

Provisions were added for periodic reviews enabling pay increases but not requiring them. This let employers reward strong performance while retaining discretion over budgets.

Over time, 'no obligation to increase' wording was included to reinforce and notify employees of the voluntary nature of raises.

In effect, detailed salary clauses developed to promote transparent pay policies while balancing worker and business interests. They aimed to set clear expectations while empowering employers' payroll decisions.

The evolution of precise salary contract language sought to foster compliance and avoid disputes by transparently aligning pay with work performed.

Clear compensation provisions became essential employment agreement components.