THP is not a basic salary. This is a common mistake among workers. Usually, workers assume that the THP is no different from the base salary. They are two different things. Take-home pay is a combination of basic salary and incentives, as well as deductions. The amount from the THP can be more than the basic salary due to incentives. Nominal can also be equal to or even less than the basic salary, especially when you have many deductions or installments at the company. Besides that, if you also need a very easy way to make online paychecks for your employees, we highly recommend you to try paystub.

The take-home pay system does not only consist of a base salary. In general, HR management in a company will convey a salary system to employees at the beginning of time. Therefore, the payroll system becomes clear, what amount will be obtained in the form of basic salary, incentives, and also potential deductions.

Broadly speaking, the THP salary system consists of a basic salary, fixed allowances, and variable allowances. All of these aspects are contained in the work agreement letter upon entry. The fixed salary for each company is different. But in general, it is not far from the Regional Minimum Wage for the local area.

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