How Do You Calculate Basic Salary? Seeking Simple Steps and Guidance

Hi,

Please tell me how to calculate the basic salary.

Thank you & Regards,
Prathamesh Chawan

Basic salary is always calculated based on the base salary, i.e., (Gross - PF (Employer's contribution)) = Base Salary. Basic salary equals 40% of the Base Salary.

Hope this information is helpful.

Regards,
Priyanka

Dear Prathamesh,

Common Method for Calculating Salary Structure

The most common method of calculating the salary structure is as follows:

- ₹1,000.00 monthly salary
- 60% of the salary: Basic + DA (60% Basic + 40% DA)
- 40% of the salary: Allowances (HRA - 20% + CCA - 40% + Education/Traveling/Conveyance - 40%) — earning part 'A'
- Deductions 'B': 12% EPF (of Basic + DA) + 1.75% ESIC (on gross salary/earning part 'A') + Professional Tax + other deductions
- A - B = Net salary

All the best. Expecting more sharing on this issue.

Regards,
Nitin Parab
[Phone Number Removed For Privacy Reasons]

The most common method for calculating basic salary is Gross - Provident Fund = Base Salary. Additionally, Basic = 40% of Base Salary. This method is typically used by every organization.

Please let me know if you need any further assistance.

Hi Rainbow123,

Could you please email me a complete procedure and methodology of TDS on Salaries for both male and female? If possible, kindly send a soft copy (in Excel format) to me at "ajeetmx@hotmail.com".

Lots of love,
Amarjeet