Taken literally, the average salary of a particular position is the mathematical "mean" of the salaries of all people employed in that position. This number is calculated by adding up all the salaries of people working in the position and then dividing that sum by the number of people working in the position.

What does the term average salary mean?

us. plural average salaries (also average wage [ C ]); (also average pay [ U ]) the average amount of money earned by workers in a particular industry, economy, area, etc. during a particular period of time: The annual average salary across the company is almost €72,000.

How do you calculate average salary?

How is Average Salary calculated? You can calculate the average base, mean salary, or average salary by adding all the salaries for a select group of employees and then dividing the sum by the number of employees in the group.