Basic Pay

Posted in Human Resource Terms, Total Reads: 5540

Definition: Basic Pay

Basic Pay is a fixed amount of salary that an employee is eligible for in return of the work he does. It does not include benefits, bonuses or any other potential form of compensation from the employer. For example:-Let the salary of Higher secondary school teacher is 12,000 that is the basic salary of teacher, and it's increasing means that the salary is increasing from 12,000 to 13,200.

Now let the higher secondary teachers decide to demand from the government an increase in their basic salary package of 10%. Therefore it means that the 10% of 12,000 (i.e. 1,200) is added to the teachers monthly income meaning that the government needs to increase the basic salary of teachers from 12,000 to 12,000 + 1,200 i.e. 13,200.


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