How Do I Calculate Gross Salary and Deductions from a Confirmed Take-Home Pay?

Hi everyone! Kindly suggest the formula to find the gross salary and other statutory deductions if the take-home amount is only confirmed.

Regards

Can you tell me what the take-home amount is? Also, what are the statutory compliance components to be considered?

Thank you.

Sure, there are two cases for Rs. 7k and 12k as take-home salary. Deductions have to be made for PF, ESI, and PT.

Please refer to the below salary structure for an in-hand amount of 7k. The total gross amount to be offered is 8000/-, and the CTC is 9040. In case of any further clarification, please revert.

Total Monthly Gross: 8000

Components:
- Basic: 5500
- HRA: 2500

Deductions:
- PF (Employee): 660
- ESIC (Employee): 140
- PT (As applicable): 200

Additional Contribution:
- PF (Employer): 660
- ESIC (Employer): 380

Total CTC: 9040
In-hand Salary: 7000

Regards,
Roopa

As requested, please find the CTC calculation for 7K and 12K. Let me know if further assistance is required.

Regards

Nice suggestion. I would like to know an Excel formula sheet so that all related fragments can be displayed with a single button when the known take-home amount will fit in it.

Regards

If the take-home salary is Rs. 7000, in that case, the salary would be like this:

Salary Breakdown

- Basic: Rs. 3500 (50%)
- HRA: Rs. 700 (20%)
- Travel: Rs. 800
- Special Allowance: Rs. 2000
- Gross Salary: Rs. 7000

Deductions

- PF (12%): Rs. 420
- ESI (1.75%): Rs. 122
- Total Deductions: Rs. 542

Cost to Company (CTC) Calculation

The cost to the company would be calculated annually as follows:

- Basic: Rs. 42,000
- HRA: Rs. 8,400
- Travel: Rs. 9,600
- Special Allowance: Rs. 24,000
- PF (12%): Rs. 5,040
- ESI (4.75%): Rs. 3,996
- Total CTC: Rs. 93,036