Basic salary is the base income of an employee in an organization. Every organization pays a fixed amount of money to its employees mostly every month for the services they offer. This income has several components in the Indian payroll. Basic salary is the income that does not contain any type of bonus or deductions. It is the fixed amount paid to employees. Mostly it comprises 35-50% of the total calculates salary of an employee.
What is a Gross Salary?
Gross Salary is referred to the amount of money an employee earns including bonuses, incentives, and basic salary which is agreed upon between the employer and employee. It is salary without any deductions like insurance, PF other deductions.
Gross Salary = Basic Salary + HRA (House Rent Allowance) + DA (Dearness Allowance) + Medical Allowance + other allowances.
Gross salary also includes bonuses, overtime pay, and incentives.