HR Glossary

Basic Salary

Basic salary is a take home salary that an employee acquires from its employer. It does not include overtime pay, commission, bonus or any other compensation provided by the company. Basic salary is the 40% of the total CTC and is fully taxable.

Your gratuity, EPF and ESIC are deducted on the basis of your basic salary. Your basic salary amount depends on your designation and the kind of industry your working in.