The term “fixed pay” refers to the predetermined sum of money that is provided by an employer to its employees in exchange for the services that are received in the form of a certain salary. The accrual salary that is indicated on the salary slip is referred to as fixed pay, and it includes both basic and numerous allowances. There is no variation in the amount that the employees receive on a monthly basis. An employee’s wage structure is comprised of both fixed and variable components within its framework. The policy of the company will determine whether or not the variables and incentives are credited on a monthly basis. For example, basic salary, Dearness Allowance (DA), House Rent Allowance (HRA), Conveyance Allowance, and other special allowances are all included in fixed pay.
