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Dear All, first of all, namaste from my side to you all. I want to inform you that I am new to this forum and I want to know one thing: how to calculate the salary. I am the HR manager of a newly established IT company, and we don't have an accountant right now. Therefore, I am handling all the salary-related processes. I have an MBA, but I lack experience in this area, so please help me in this case. I don't know how to calculate the salary, what to include, and what not to include. Please help me.

Salary Calculation Example

For example, if the salary of a person is $12,000, then how do I calculate his monthly salary including components like D.A., HRA, and so on? Please send me the format.

Thanks in advance.

Regards, Shivani Sharma

From India, Chandigarh
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Dear Shivani, We can surely help you out, the 12000/- figure that you have mentioned is in hand amount of the Gross monthly salary? Regards, Ashwini
From India, Pune
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So it's the gross salary per month, right? If so, the basic amount would be 50% of the gross salary, followed by HRA (40% of basic), Medical (15% of basic), and LTA (40% of basic). These are the general components of any salary.
From India, Pune
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