HR Glossary
Basic Salary
The fixed core component of an employee's pay, before allowances, bonuses, or deductions.
Definition
Basic salary is the fixed portion of compensation that forms the base for calculating other components like HRA, PF contributions, and gratuity. It typically does not vary month to month.
Why It Matters
Because so many statutory calculations are based on basic salary, getting this component right is foundational to accurate payroll.