What is Fixed Pay ?
Fixed Pay refers to the guaranteed amount of money an employer pays to an employee as compensation for their services, typically outlined as a fixed salary. It is the consistent monthly amount specified in the salary slip, including components like basic pay and various allowances. Unlike variable pay or incentives, which depend on performance or company policies and may not be credited monthly, fixed pay remains constant.
Components of Fixed Pay:
Basic Pay: The core component of the salary.
Dearness Allowance (DA): To offset inflation.
House Rent Allowance (HRA): To cover housing expenses.
Conveyance Allowance: For commuting expenses.
Special Allowances: Other specific benefits as defined by the employer.
While an employee's salary structure includes both fixed and variable elements, fixed pay ensures a predictable income every month.