New HR Manager Seeking Guidance: How Do I Calculate Employee Salaries Without an Accountant?

Dear All, first of all, namaste from my side to you all. I want to inform you that I am new to this forum and I want to know one thing: how to calculate the salary. I am the HR manager of a newly established IT company, and we don't have an accountant right now. Therefore, I am handling all the salary-related processes. I have an MBA, but I lack experience in this area, so please help me in this case. I don't know how to calculate the salary, what to include, and what not to include. Please help me.

Salary Calculation Example

For example, if the salary of a person is $12,000, then how do I calculate his monthly salary including components like D.A., HRA, and so on? Please send me the format.

Thanks in advance.

Regards, Shivani Sharma

Dear Shivani, we can surely help you out. Is the ₹12,000 figure that you have mentioned the net amount of the gross monthly salary?

Regards,
Ashwini

So it's the gross salary per month, right? If so, the basic amount would be 50% of the gross salary, followed by HRA (40% of basic), Medical (15% of basic), and LTA (40% of basic). These are the general components of any salary.