Struggling with Salary Breakdown? How to Calculate Basic Pay, DA, and HRA from Gross Salary

Dear All,

How to calculate Basic Pay, DA, HRA, Conveyance, and Other Allowances from Gross Salary of Rs. 20,000/-? I want to know the correct formulas. Kindly do the needful.

Regards,
Murugesh

Hi Shrimin,

I also need the same format for the calculation of Basic, PF, Conveyance, payslip, etc. And I need the structure/policy if you have regarding conveyance and meal claims of marketing employees who are in the field. Please help.

Shrimin

Hi all,

Please tell me the procedures for filling up and how to submit PF, ESI, and Professional Tax forms.

Regards,
Shivakanth

Dear,

Please note, there is no single formula to arrive at Salary Breakup and there are different formulas followed by different organizations, as per their own thinking and convenience. While deciding salary structure one has to remember following points

• Most of the statutory liabilities like PF, Gratuity, and Bonus etc. are percentages of Basic plus DA. Hence any rise in Basic or DA will increase statutory liabilities
• It is not necessary to have DA in Salary Structure. For that matter none of the items are compulsory or must.
• Income Tax treats some salary items (HRA, Conveyance) differently for the purpose of calculation of Income Tax liability. Hence organizations decide the breakup considering legal provisions to minimize tax liability.
• Some organizations keep some or all items of salary structure as percentage of Basic Pay. Whenever there is increase in Basic Pay, other items also increase automatically.
• Some organizations keep some or all items of salary structure as fixed allowances. In this case allowances remain uniform in respect of all employees. These allowances won't change unless specific rise is given in those allowances.
• Some organizations divide entire gross salary into fix percentages to arrive at breakup of salary structure. In this case only percentages are uniform but allowances of individual will be different.

One can choose any one combination or can also have mixed combination/s.
Also search for previous posts on same subject. There is lot of material already available on citehr.

Thanks & Regards

Dear All,

I hope the attachment will help you with salary calculation and breakdown.

Dear All,

I have newly been appointed as an HR Manager in an educational institute. The total number of employees is 60, but employees drawing a salary less than 6500 per month are only 5. I would like to know if the institute is covered under the EPF and ESIC Acts or not.

Thanks & Regards

[QUOTE=anuj_4242;887775]
Dear All,

Hope the attachment will help you with salary calculation and breakdown!

I think the percentages in the attachment are not very satisfactory.
CCA should not be more than Rs. 800/-
TA should not be more than Rs. 1200/-

Thanks,
Sekhar

Dear Mr. Murgesh,

Kindly calculate the following components in the CTC:
- 30% basic
- 40% HRA in the Basic
- TA deduction (approximately $800/month)
- PF: 12% of Basic
- Bonus: 10% Basic

(I think he/she is not subject to ESIC deductions).

Medclaim will be as per the company's agreement with the insurance company. Any remaining balance amount should be included in special pay.

Regards,
Srinivasulu.R

My salary is $14,000. Please divide the percentages into fragments such as Basic, HRA, Medical, and Special Allowance.

[QUOTE=bold1971]

Hi,

Thanks for your information. But I can't able to open this document. Can you please send me the link with the password so I can see if my requirement is there in this.

Regards,
bold1971

Well, yes, your institute is covered under the EPF Act. As the workers are more than 20, which fulfills one condition, and 5 of your workers are getting a salary below 6500/-, another condition which attracts EPF. However, those whose salary is above 6500/- are also deductible. I want to know if those who are above the 6500/- were less than or more than 6500/- at the time of appointment because if they were below, then after some time, their salary is above 6500/-, they are also covered under EPF, which is not revocable now.

Dear All, How do you calculate Basic Pay, DA, HRA, Conveyance, and Other Allowances from a Gross Salary of Rs. 20,000/-? I want to know the correct formulas. Kindly do the needful.

Regards, Mahesh

How to Calculate Basic Pay, DA, HRA, Conveyance, and Other Allowances

How can I calculate Basic Pay, DA, HRA, Conveyance, and Other Allowances from the Gross Salary of Rs. 20,000? I want to know the correct formulas. Kindly do the needful.

Regards,
Murugesh

How to Calculate Basic Pay, DA, HRA, Conveyance, and Other Allowances from Gross Salary

How do you calculate Basic Pay, DA, HRA, Conveyance, and Other Allowances from a Gross Salary of Rs. 20,000/-? I want to know the correct formulas. Kindly do the needful.

Regards,
Murugesh

Hi sir,

I want a detailed salary breakup for Rs. 25,000. I have worked in the manufacturing industry (Basic, HRA, T Allowances, M Allowances). How do I calculate the percentage?

Anyone, please help me in forming the best salary structure for tax-saving purposes. The salary is Rs. 62,500 per month with no PF deduction. Please help; it's really urgent.

Hi,

Could you please share the rules for DA calculation in the salary structure?

Thank you.

Dear All,

How to calculate Basic Pay, Dearness Allowance (DA), House Rent Allowance (HRA), Conveyance, and other allowances from a Gross Salary of Rs.20,000? I want to know the correct formulas. Kindly do the needful.

Dear All,

How to calculate Basic Pay, DA, HRA, Conveyance, medical allowance, child education allowance, and Other Allowances from Gross Salary of Rs. 20,000/-? I want to know the correct formulas. Kindly do the needful.

I need this very urgently. Please send it in Excel format.