Definition - Financial Terms

chandrika.gurudutt
Hello Everyone!
I understand the question am posting is very silly to answer. However i would want the seniors to give to the definition of the BASIC SALARY..
We are preparing a functional document for the our HR product and hence require a definition for the sal component BASIC SALARY. Though we know what basic salary is, i want it in the financial terms.
Regards
Chandrika
rashidmusa
The basic salary can be defined as under:
Basic Salary means monthly fixed salary excluding allowance, perks and benefits payable as per the market value of the job and compensation philosophy of the organization.

Base salary is totally based on the pricing of the job based on job evaluation and then it translate with the total compansation package which includes the allowance- operational allowances and fixed allowances:

Operational Allowances can be- Shift Allowance, Hazardous Allowance, Specific Location allowance, Working Conditions Allowance, Other Hardship related Allowances which are operation specific.

Fixed Allowances can be- Housing Allowance, Transport Allowance, Education Allowance etc

Regards
Rashid
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute