Do we have to calculate the salary after deducting HRA or First calculate the earnings and then deduct HRA?

pooja.borannavar
Hi, I have a query regarding salary calculation,

We have fixed gross salaries, based on that 60% will go into Basic, AED 750 HRA (If staff opts for staff accommodation then it will be deducted) and balancing amount as Other allowance. If the staff is on leave for more than one day it will go as LOP. Now, the calculation as below,

For example, the salary of the staff is AED 10000

=10000/30*29 = 9666.66 (If the staff is not in company accommodation)
=10000-750 = 9250/30*29 = 8941.666 (If the staff is in Company accommodation)

Now the query is do we have to calculate the salary after deducting HRA or First calculate the earnings and then deduct HRA?

Kindly advice.

Regards,
Pooja M B
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