How To Calculate Basic - Take Home Salary

Hi,

Please let me know how to calculate Basic. Is there any specific formula for the same? What we used to do is basic is 40% of the CTC offered. But in my current organization, it's not like that. They have some different slabs, and we try to give a net take-home salary as much as we can.

Please suggest!
Bharat

Dear Bharat,

There is no specific formula for calculating the Basic Pay. Every company has its own formula. Some will derive 70% of the total gross salary, and the same is the case with others.

In my company, we have 55% basic pay of the gross salary and 45% house rent of the gross salary. Altogether, it will become 55% + 45% = 100%.

Regards,
Zubair

In actuality, what your company is doing is right. Most companies prefer their basic salary to be low, around 40% or 50%, as this allows them to minimize the employer PF contribution. However, if you are cutting at least 50% of the basic pay, it will be better. :D