Need Help Calculating Salary Components Like HRA and Gratuity? Let's Discuss!

Dear all, can anyone help me with how to calculate the following structure using formulas:
- BASIC
- HRA
- CONVEYANCE
- SPL ALL.
- LTA
- MED ALL
- EX-GRATIA
- GRATUITY

Thanks,
Dhana

Please kindly calculate using the following formula:

Salary Components Calculation

- **Basic:** 50% of CTC
- **HRA:** 20% of Basic
- **Conveyance Allowance:** 2%
- **Education Allowance:** 2%
- **PFP:** 20% of CTC
- **Medical & Others:** As per your company's convenience.

Regards,

Please find the attached document which may help you.

Regards,
Karthik

Surely, I'll explain it to you. Just read the following example:

Example of Salary Calculation

Suppose a person has a monthly income of 10,000. Then we can calculate his net salary as follows:

- Basic: 5000 (50% of CTC)
- HRA: 1000 (20% of Basic)
- Conveyance Allowance: 100 (2% of Basic)
- Education Allowance: 100 (2% of Basic)
- PFP: 1927 (20% of CTC - Flexible)
- Medical: 200
- Other: 500

So, the employee's in-hand amount will be Rs. 8827. Other deductions are as follows:

- PF: 12% of Basic
- ESI: 1.75% of Gross
- Bonus: 8.33% of Basic

I hope this explanation helps. Let me know if you have any questions.

Thank you for the payslip attachment. Could you please explain how you calculated the special and other allowances? Also, I am curious about how you arrived at Rs. 200 for the medi-claim.

Gratuity Calculation

Regarding gratuity, do we need to consider 4.87% of the basic salary?

Employer Contribution to PF

For the employer contribution, is the PF 12% calculated at 13.61% of the basic salary?

I would appreciate it if you could clarify these points for me.

Thank you,
Dhana

Mediclaim Costs

Mediclaim is on average $200 per month if it is an individual policy with $100,000 insurance coverage.

Gratuity Error

Gratuity - sorry, there was an error.

Gross Salary Calculation

Deduct from the proposed gross to get the exact gross because Conveyance $800 and Medical Reimbursement $1250 are completely non-taxable, so we have to include these components.

Tax Calculations

For tax calculations, the House Rent Allowance (HRA) will be considered at 40% of the Basic salary.

Please find the attached...