Understanding Salary Components: Can Anyone Share Formulas for Basic, PF, ESI, HRA, and DA?

I am Priya. I want to know how to calculate the Basic, PF, ESI, HRA, and DA. I want formulas. If anyone knows the formulas, then please send me those formulas. Thank you.

Hi Priya,

Please find attached the file for PF & ESI Calculation. As far as Basic and HRA are concerned, it varies from company to company. There is no specific formula to calculate it. HRA is an allowance that is generally calculated as a fixed percentage (for example, 40%) of the Basic Salary.

Regards,
Hariraj

In addition to Hari, I suggest that the basic salary should be 50%-60% of the gross salary, but not less than the minimum wages of the state. The HRA should be 30%-40% of the basic salary. Conveyance allowance should be Rs. 800/- (any amount above that is taxable), and Medical Allowance should be Rs. 1250/- (any amount above that is taxable). The rest should be allocated to other allowance heads.

Thanks & Regards,
Sumit Kumar Saxena