Confused About Your Salary Breakdown? Learn How to Calculate Your Basic Salary from Gross Pay

My salary is $5000 per month. I would like to know how to calculate my basic salary and all allowances. Please provide me with the financial formula to calculate my basic salary. I want the correct formula to derive the basic salary from my gross salary.

Employers determine the basic salary, which may range from 25% to 50% of the gross salary. For some employers, it is fixed at $6500 if the salary is higher. In your case, you need to ask your employer about the exact policy they have in place. In my company, it's 25% of the gross salary.

Thanks,
Sarita

The HRA percentage is up to 50% of the basic salary in metro cities. The DA is based on the Consumer Price Index and varies depending on the category the company falls under. Medical allowances should be Rs. 1250, and they are non-taxable.

Regards,
Sanjay

Salary Components Breakdown

Salary components are approximately structured on the following basis:

- 50% of your gross salary is Basic.
- 30% of your gross salary is House Rent Allowance.
- Rs. 800/- per month is the Transport Allowance.
- 11.33% less Rs. 800/- per month is the Conveyance Allowance.
- 8.67% is allocated for Medical/Leave Travel Assistance.

Please note that these percentages may vary from company to company.

Regards,
Bishwaranjan

In my view, the basic salary should be 40% to 45% in the case of minimum wages, and apart from that, it should be 30% to 35% of the CTC.

Regards,
Anand