Basic Salary

What is Basic Salary?

It is also called base salary. It is the amount of money a salaried employee earns on a regular basis before any additions of dedication are applied to their earnings. These additions and deductions can have an impact on the size of the employee’s paycheck.  

How is Basic Salary calculated and paid?  

Salaried workers receive the same fractional amount of their annual basic salary every payday. The annual basic salary is divided by the number of working days in a year at the company.  

What is the difference between basic salary and hourly pay? 

Employees who receive a basic salary receive a fixed amount per pay period regardless of how many hours they worked. However, employees who receive hourly pay are paid for the number of hours they work.  

Can basic salary change?  

Basic salary can increase or decrease. Many jobs have a salary range that states the minimum and the maximum amount that a company is willing to pay for a position. This salary change is based on market rates for that work, but at the same time, the experience and skills of employees are also taken into account. 

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Hanan Ashraf
A strong believer in the power that words have over people, Hanan works on producing content that is creative but at the same time graspable for readers. A content writer and digital marketing intern, she loves to write about automation, HR, performance management, and employee wellbeing.