Meaning, Definition & FAQs
Basic Salary
Basic salary is the fixed amount of money an employee earns before any additions like bonuses, allowances, or deductions such as taxes and provident fund contributions. It forms the core of an employee’s total compensation and is usually determined based on the employee’s role, skills, experience, and company policies. Basic salary is crucial as it directly affects other salary components such as house rent allowance (HRA), provident fund (PF), and gratuity.
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