Hi friends, Please let me know that How to calculate basic salary ?
From India, Gurgaon
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From India, Gurgaon
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Hi Ashutosh,
The calculation of basic salary varies from company to company. For example, I am working in a group where in one unit, the basic salary is calculated as 60% of the gross salary, while in another unit, the calculation follows the formula below:
HRA - 25% of Basic
LTA - 8.33%
Medical - 8.33%
PF - 12%
Gratuity - 4.81%
Bonus - 8.33%
First, we sum up all the aforementioned percentages, which totals to 66.8%. The formula to calculate the basic salary is as follows:
[ text{Basic Salary} = text{Gross Salary} times frac{100}{166.8} ]
This variation in calculation is common from organization to organization.
Regards,
Nidhi
From India, Jaipur
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13The calculation of basic salary varies from company to company. For example, I am working in a group where in one unit, the basic salary is calculated as 60% of the gross salary, while in another unit, the calculation follows the formula below:
HRA - 25% of Basic
LTA - 8.33%
Medical - 8.33%
PF - 12%
Gratuity - 4.81%
Bonus - 8.33%
First, we sum up all the aforementioned percentages, which totals to 66.8%. The formula to calculate the basic salary is as follows:
[ text{Basic Salary} = text{Gross Salary} times frac{100}{166.8} ]
This variation in calculation is common from organization to organization.
Regards,
Nidhi
From India, Jaipur
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hi, There is no specific in basic.it varies company 2 company, where i m working it is 40% of basic. Rgds, Suryakant
From India, New Delhi
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From India, New Delhi
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There is another way to calculate the basic salary too.
As rightly said, there aren't any hard and fast rules for calculating the basic pay.
The current scenario is if the basic pay is less than Rs 3500, the employer has to pay the minimum statutory bonus ranging from 8.33%. Hence, the employer makes the minimum basic of Rs 3600 and above. With the effect of the new parliamentary note of basic revision to Rs 10000 towards statutory bonus is still to be worked out.
However, here are a few tips:
1. Basic salary would depend on the designation level of the person.
2. Basic is usually fixed depending on the CTC (cost to the company). This can range from 20 to 60%.
3. It is advisable to have an optimum level of basic salary and get this standardized across the grades/levels for operational convenience and PF remittance, which will affect employees' take-home pay.
4. Once the basic pay is fixed, we can fix the other components with the required percentages (HRA, other allowances, medical, LTA, reimbursements, etc.).
From India, Trivandrum
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As rightly said, there aren't any hard and fast rules for calculating the basic pay.
The current scenario is if the basic pay is less than Rs 3500, the employer has to pay the minimum statutory bonus ranging from 8.33%. Hence, the employer makes the minimum basic of Rs 3600 and above. With the effect of the new parliamentary note of basic revision to Rs 10000 towards statutory bonus is still to be worked out.
However, here are a few tips:
1. Basic salary would depend on the designation level of the person.
2. Basic is usually fixed depending on the CTC (cost to the company). This can range from 20 to 60%.
3. It is advisable to have an optimum level of basic salary and get this standardized across the grades/levels for operational convenience and PF remittance, which will affect employees' take-home pay.
4. Once the basic pay is fixed, we can fix the other components with the required percentages (HRA, other allowances, medical, LTA, reimbursements, etc.).
From India, Trivandrum
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Dear Sharma Vinitha,
The salary structure will go as follows:
Basic Salary: 30% - 50% of the CTC (Cost to Company)
HRA: 50% of Basic
Dearness Allowance: Most companies will not have this parameter.
This (D.A) will be allotted by the Government.
D.A is fully taxable.
Transport Allowance: Up to ₹8000/month is not taxable.
Telephone Charges: Fully Taxable.
Deputation Allowance: Completely Taxable.
Annual Medical Reimbursement: Rs.15,000/-
Gross Salary + Statutory deductions like PF = CTC
Gross - Deductions = Take-Home
Hope this will help you.
Best Regards,
Isaac Patturaja
From India, Madras
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The salary structure will go as follows:
Basic Salary: 30% - 50% of the CTC (Cost to Company)
HRA: 50% of Basic
Dearness Allowance: Most companies will not have this parameter.
This (D.A) will be allotted by the Government.
D.A is fully taxable.
Transport Allowance: Up to ₹8000/month is not taxable.
Telephone Charges: Fully Taxable.
Deputation Allowance: Completely Taxable.
Annual Medical Reimbursement: Rs.15,000/-
Gross Salary + Statutory deductions like PF = CTC
Gross - Deductions = Take-Home
Hope this will help you.
Best Regards,
Isaac Patturaja
From India, Madras
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SALARY SHEET CALCULATION.xls
Salary calculation.doc