Basic pay refers to the fixed portion of an employee's salary or wages that is not tied to additional compensation elements such as bonuses, overtime pay, or allowances. It is the core amount of money that an employee receives for their regular work or services, typically expressed as an hourly rate or an annual salary.
Usually, the basic salary is 40% to 50% of CTC (Cost to Company). Statutory components such as bonus, PF, gratuity, and other benefits are determined on the basis of the basic salary.
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