Basic salary
In one sentenceThe fixed part of the employee's wage agreed in the contract before any allowances. Entitlements such as overtime and part of the contributory wage are calculated on it.
Simply put
The basic salary is the fixed amount written in the contract, without housing, transport or commissions.
It matters because many calculations start from it: the fifty percent in overtime is calculated on the basic hourly wage, and GOSI is calculated on the basic salary plus the housing allowance.
Worked example
A pharmacy employee has a basic salary of 6,000 SAR, and on top of it gets a housing allowance of 1,500 SAR and a transport allowance of 500 SAR.
Basic salary6,000
Basic daily wage (assuming 30 days a month)6,000 ÷ 30 = 200
Basic hourly wage (assuming 8 hours a day)200 ÷ 8 = 25
Basic hourly wage25 SAR
Don't confuse it with
Total wageThe basic salary is one part of the wage, while the total wage is the basic plus all fixed allowances.
in FullScreen ERP
Payroll in the system separates the basic salary from allowances and deductions for each employee. HR and payroll