Your basic salary is the foundation of your total compensation package. It’s the fixed amount you receive before taxes or other deductions are taken out, and before any bonuses or overtime pay are added in.
Understanding exactly what a basic salary is — and how it differs from your gross or net pay — is essential for both employees and employers.
In this article, we’ll cover the definition of a basic salary, the factors that influence it, how it compares to gross and net salary, and how employers typically determine it.