Our salary is divided into two components: Basic Salary and Travel Allowance (Rs. 500/- fixed for everybody). We also deduct Professional Tax from the salary.
Salary Calculation Query
Now, my question is: is the following the correct way to calculate the salary?
Suppose Mr. X's salary is Rs. 9000/- per month, i.e., Rs. 8500/- basic + Rs. 500/- Travel Allowance. He was on leave without pay (LWP) for 2 days.
Earned salary = (8500/30)*28 = Rs. 7933/-
Travel Allowance = Rs. 500/-
Gross Salary = Rs. 8433/-
Deductions
Professional Tax = Rs. 150/- (because the salary is Rs. 9000)
Net Salary = Rs. 8283/-
Thank you.
From India, Mumbai
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Salary Calculation Query
Now, my question is: is the following the correct way to calculate the salary?
Suppose Mr. X's salary is Rs. 9000/- per month, i.e., Rs. 8500/- basic + Rs. 500/- Travel Allowance. He was on leave without pay (LWP) for 2 days.
Earned salary = (8500/30)*28 = Rs. 7933/-
Travel Allowance = Rs. 500/-
Gross Salary = Rs. 8433/-
Deductions
Professional Tax = Rs. 150/- (because the salary is Rs. 9000)
Net Salary = Rs. 8283/-
Thank you.
From India, Mumbai
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In my suggestion for travel allowance, you can calculate it as follows: 500/30*28. It seems you are not taking into account PF, ESI, and other deductions. Also, where is the concept of a weekly off in the policy? I recommend enhancing your HR policy to help reduce employee turnover.
Regards,
Venkat
From India, Chennai
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25Regards,
Venkat
From India, Chennai
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Suppose you should use the following formula: If one person works for 22 days in a month and there are 4 Sundays in that month, their gross income is 9000. Calculating his salary: 22/26*9000 = 7615.
Group Insurance for Employees
Then, you can arrange group insurance for the employees. I think they will ask for 200 per head per year. This will motivate your employees. Normally, all small firms also provide this kind of insurance. All insurance companies offer group insurance.
All the very best.
From India, Chennai
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Group Insurance for Employees
Then, you can arrange group insurance for the employees. I think they will ask for 200 per head per year. This will motivate your employees. Normally, all small firms also provide this kind of insurance. All insurance companies offer group insurance.
All the very best.
From India, Chennai
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SALARY SHEET CALCULATION.xls
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