How To Calculate Basic, HRA, Conveyance & Other Of Total Salary?

To calculate the basic salary, House Rent Allowance (HRA), conveyance, and other components of the total salary amount, for example, Rs 46,200/-, you can follow these steps:

1. Basic Salary: The basic salary is typically a fixed portion of the total salary and does not include any allowances or bonuses.

2. House Rent Allowance (HRA): HRA is provided to employees to cover their rental expenses. The calculation of HRA varies based on factors like the employee's salary, the city of residence, and whether they live in their own house or a rented accommodation.

3. Conveyance Allowance: Conveyance allowance is given to employees to cover their travel expenses related to commuting to and from work. This amount is usually fixed and is part of the total salary package.

4. Other Allowances: Depending on the company's policies, there may be other allowances included in the total salary amount, such as medical allowances, special allowances, or incentives.

By understanding the components of the total salary amount and their respective calculations, you can determine the breakdown of Rs 46,200/- and understand how each component contributes to the overall salary package.

Hello Neeta,

Below is the breakup of the salary:

Basic is 30% of the gross salary.
HRA is 50% of Basic.
Conveyance is Rs. 9,600 fixed.
Medical Allowance is Rs. 15,000 fixed.
All remaining amounts will fall under Other Allowances.

Regards,
Riha Nair

Hello there,

This all depends on the company policy. I am sharing with you my company's practices; I hope that may help you.

- BASIC: 50% of CTC
- HRA: 50% of Basic
- TA: 1600 MAX
- MEDICAL: 1250
- LTA: 8.33% of BASIC
- BONUS: 8.33% of BASIC
- C.E.A.: 200
- SPECIAL ALLOWANCE: BALANCE FIGURE

Regards,
Prem
9251400802

To calculate the components of the total salary amount in percentage, follow these steps:

Gross - 100%
Basic - 50% of Gross
HRA - 30% of Gross
Conveyance - ___
Medical - ___

Please fill in the percentages for Conveyance and Medical based on your company's policy or standard practices.

Payroll calculations

Payroll calculations usually constitute four main components: Basic pay, Allowances, Deductions, and IT Declarations. Income Tax is calculated on (Basic + Allowances - Deductions) * 12 - (IT Declarations + Standard deductions).

Gross Pay

Gross Pay is the sum of Basic pay + Allowances.

Net Pay

Net Pay is the difference between Gross Pay - (Deductions + Total TDS). Total TDS is the sum of TDS, Surcharge, Health & Education Cess.

HRA

The amount received as the HRA from the employer. Actual rent paid less 10% of the basic salary and 50% of the basic salary if staying in a metro city and 40% in a non-metro city.

Basic Pay

Basic Pay is 50% of Gross salary (Gross * 0.5).

Deductions

Deductions are the sum of PF, ESI, and PT, etc.

- TDS is calculated on (Basic + Allowances - Deductions) * 12 - (IT Declarations + Standard deductions).
- PF deduction (Provident Fund) is 12% of Basic or 15,000, whichever is lower.
- ESI is 0.75% of Gross Pay or 21,000, whichever is lower.
- Standard deductions (50,000).

Know more at: www.sumopayroll.com