Calculation of Basic Salary on Gross Pay
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Calculation of Basic Salary on Gross Pay

Anjals Started The Discussion:

I want to know how to calculate basic on gross salary. My gross pay is Rs.17450/-. (its excluding LTA & Medical of Rs.1150/- per month). My basic as per my gross is Rs.6900/- , is this correct? also let me know basic is on gross salary excluding LTA and medical benefits.

HR Deptt. says for easy entry in Tally they made round figure of basic as well as LTA & Medical Rs.575/- each per month.
Pl clarify.

krishnasarathraj - Member Since: Feb 2009
Hi, Basic salary should be not less than 40% of your gross, as per your salary structure it is correct.

srividya.kothapalli - Member Since: May 2009
to calculate your basic, you need to know your annual gross amount 40 % of your gross is your basic. the rest comes under the allowances and benefits ,as per the company policy

rajagarwal - Member Since: Apr 2011
Dear Anjals,

There is no such rule of basic on Gross, its vary company to company,however as per ideal practices it should be between 25 to 40 % of gross salary,however there is no hard and fast rule for that calculation.so we can not say that basic should not be less than 40% of gross salary??( as mentioned by M.V.K. Sarath Raja).

Secondly Medical reimbursement has standard amount which is 1250 not 1150??

Regards
Raj Agarwal
Manager-HR

rockey910 - Member Since: Sep 2011
Dear Raj,

Please let me Know....... Is LTA & Medical Allowances are eligible for all Company Staffs or only for AM & Above.
Actually in my Company they are giving that facility to AM & Above only.

Please suggest...

Regards

Rakesh Kumar

Mwanapipi - Member Since: Oct 2011
Dear
I want to calculate Tax payable using excel by I have failed, please assist me
RESIDENT INDIVIDUAL INCOME TAX RATES WITH EFFECT FROM 1/7/2010
SN
MONTHLY TAXABLE INCOME
TAX RATE
1
Where income does not exceed Tshs. 135,000/=
NIL
2
Where total income exceeds Tshs. 135,000/= but less than Tshs. 360,000/=
14% of the amount in excess of Tshs. 135,000/=
3
Where total income exceeds Tshs. 360,000/= but less than Tshs. 540,000/=
Tshs. 31,500/= plus 20% of the amount in excess of Tshs 360,000/=
4
Where total income exceeds Tshs. 540,000/= but less than Tshs. 720,000/=
Tshs. 67,500/= plus 25% of the amount in excess of Tshs 540,000/=
5
Where total income exceeds Tshs. 720,000/=
Tshs. 112,500/=plus 30% of the amount in excess of Tshs 720 ,000/=


Your
leslie Dulle
Mentor, Iringa DC

Mwanapipi - Member Since: Oct 2011
Dear all
In order to calculate net pay, the employee have compusory deduction from gross pay of 10% OF National insurance, 10% Socila security fund and the tax deduction according to following tax band. However, I suppossed to use Excel application to make the calculation using the the band provided below
RESIDENT INDIVIDUAL INCOME TAX RATES WITH EFFECT FROM 1/7/2010
SN
MONTHLY TAXABLE INCOME
TAX RATE
1
Where income does not exceed Tshs. 135,000/=
NIL
2
Where total income exceeds Tshs. 135,000/= but less than Tshs. 360,000/=
14% of the amount in excess of Tshs. 135,000/=
3
Where total income exceeds Tshs. 360,000/= but less than Tshs. 540,000/=
Tshs. 31,500/= plus 20% of the amount in excess of Tshs 360,000/=
4
Where total income exceeds Tshs. 540,000/= but less than Tshs. 720,000/=
Tshs. 67,500/= plus 25% of the amount in excess of Tshs 540,000/=
5
Where total income exceeds Tshs. 720,000/=
Tshs. 112,500/=plus 30% of the amount in excess of Tshs 720 ,000/=
cording to the following tax band.

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