Basic Salary

Understanding what basic salary means is important for business professionals to understand. Simply put, basic salary refers to the particular amount of money an employee is paid prior to the application of any additions. Basic salary, gross salary, and net salary all share the same meaning and can be calculated in the same way. However, in order to better understand basic salary meaning, it’s helpful to know the difference between basic salary and base salary.
Basic Salary vs Base Salary
Base salary is a subcategory of basic salary and refers to the initial amount of the basic salary range that’s given to the employee at the beginning of the fixed period. In other words, basic salary usually has a range, during which the value in the range is increased over fixed, incremental periods. For example, say the basic salary range begins at S$1,000 and is gradually increased over the fixed period until the maximum value of the range is reached at, say, S$5,000. The start of this incremental period is considered the base salary. In other words, the base salary is the minimum, basic pay an employee will receive at the start of their employment.