{"id":4506,"date":"2026-05-29T21:58:30","date_gmt":"2026-05-29T21:58:30","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4506"},"modified":"2026-05-30T02:53:29","modified_gmt":"2026-05-30T02:53:29","slug":"basic-salary-zoho-payroll","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/basic-salary-zoho-payroll\/","title":{"rendered":"Basic Salary"},"content":{"rendered":"<style>\n.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}\n.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}\n.gt-section{margin:0 0 36px}.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}\n.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}.gt-example-box strong{color:#2563EB}\n.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}\n.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}\n.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}\n<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">Basic Salary in Zoho Payroll is the fixed, non-variable component of an employee&#8217;s compensation that forms the foundation of the salary structure. It is fully taxable, serves as the base for PF wage computation (12% employee contribution, 12% employer contribution), and is commonly used as the reference value for calculating HRA, Gratuity, and other allowances.<\/div>\n<div class=\"gt-section\">\n<h2>Basic Salary and PF Computation<\/h2>\n<p>Under the Employees&#8217; Provident Funds Act, 1952, PF is calculated on &#8216;PF wages&#8217;, which at minimum includes Basic Salary and Dearness Allowance. Zoho Payroll tags Basic as a PF-applicable component by default. If Basic exceeds Rs 15,000, the employer may cap PF contribution at Rs 1,800 (12% of Rs 15,000) or continue on actual Basic, depending on company policy set in Zoho Payroll&#8217;s PF settings.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Basic Salary as Gratuity Base<\/h2>\n<p>The Payment of Gratuity Act uses Basic plus Dearness Allowance as the base for gratuity calculation: (Basic + DA) \/ 26 x 15 x years of service. Zoho Payroll uses this formula automatically when generating a gratuity report or processing a final settlement, provided Basic is correctly tagged.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Typical Basic Salary Ratios in India<\/h2>\n<p>Industry practice in India typically sets Basic at 40-50% of CTC for mid-level roles. A higher Basic increases statutory costs (PF, Gratuity) but reduces take-home due to higher taxable income. HR teams often calibrate the Basic percentage when structuring CTC offers to balance tax efficiency and statutory obligations.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Example:<\/strong> An employee has a CTC of Rs 6 lakh per annum. The company sets Basic at 40% = Rs 20,000 per month. Zoho Payroll computes EPF deduction as Rs 1,800 (12% of Rs 15,000 capped), employer EPF as Rs 1,800, and HRA at 50% of Basic = Rs 10,000 automatically.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/salary-structure-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Salary Structure<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/hra-house-rent-allowance-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">HRA<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/pf-provident-fund-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">PF<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/gratuity-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Gratuity<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/ctc-cost-to-company-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">CTC<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What is Basic Salary in Zoho Payroll?<\/strong><\/p>\n<p>Basic Salary is the fixed, taxable core component of a salary structure in Zoho Payroll. It drives PF contribution calculations, forms the base for HRA and Gratuity formulas, and appears as a separate earning line on every payslip.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>What percentage of CTC should Basic Salary be in India?<\/strong><\/p>\n<p>There is no legal minimum ratio, but most Indian companies set Basic at 40-50% of CTC. A higher Basic increases PF and Gratuity costs. Zoho Payroll allows you to configure the percentage formula at the salary structure level so it applies consistently across all assigned employees.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Basic Salary in Zoho Payroll is the fixed, taxable core of an employee&#8217;s pay package. It is the primary basis for calculating PF contributions, HRA, and other allowances.<\/p>\n","protected":false},"template":"","meta":{"seo_title":"Basic Salary | Zoho Payroll Glossary","seo_description":"Basic Salary in Zoho Payroll is the fixed, taxable core of an employee's pay package. It is the primary basis for calculating PF contributions, HRA, and ot","seo_keyword":"basic salary zoho payroll","seo_faqs":"[{\"q\": \"What is Basic Salary in Zoho Payroll?\", \"a\": \"Basic Salary is the fixed, taxable core component of a salary structure in Zoho Payroll. It drives PF contribution calculations, forms the base for HRA and Gratuity formulas, and appears as a separate earning line on every payslip.\"}, {\"q\": \"What percentage of CTC should Basic Salary be in India?\", \"a\": \"There is no legal minimum ratio, but most Indian companies set Basic at 40-50% of CTC. A higher Basic increases PF and Gratuity costs. Zoho Payroll allows you to configure the percentage formula at the salary structure level so it applies consistently across all assigned employees.\"}]","term_type":"Business","glossary_related":"","glossary_links":""},"glossary_category":[1250],"class_list":["post-4506","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-payroll"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4506"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}