What does absolute level refer to?

The term "absolute level" in this context refers specifically to the base salary, as it represents the fixed component of an employee's compensation. Base salary is the initial rate of compensation an employee receives before any additional benefits or bonuses are factored in. It serves as the foundation of the total compensation package, indicating how much an employee earns for their role excluding variable pay elements.

Base salary is often evaluated in comparison to other compensation elements, and understanding it as the absolute level allows organizations to assess how competitive they are in the market. It signifies a clear and tangible figure, making it easier to compare across different positions, industries, and geographical locations.

While total compensation encompasses base salary, benefits, bonuses, and other perks, and market value relates to the broader worth of a role in the labor market, the absolute level specifically highlights the steady, guaranteed income attributed directly to an employee's work.