Basic Salary definition

Basic salary is the amount paid to an employee before any extras are added or taken off, such as reductions because of salary sacrifice schemes or an increase due to overtime or a bonus. Allowances, such as internet for home-based workers or contributions to phone usage, would also be added to the basic salary.

This compares with gross salary and net salary. Companies also use the term cost to company, which refers to the total cost to the company of employing someone.