I want to know how to calculate the basic on gross salary. My gross pay is Rs. 17,450/- (excluding LTA & Medical of Rs. 1,150/- per month). My basic as per my gross is Rs. 6,900/-. Is this correct? Also, let me know if the basic is on the gross salary excluding LTA and medical benefits.
The HR Department says for easy entry in Tally, they made round figures of basic as well as LTA & Medical Rs. 575/- each per month. Please clarify.
From India, Delhi
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The HR Department says for easy entry in Tally, they made round figures of basic as well as LTA & Medical Rs. 575/- each per month. Please clarify.
From India, Delhi
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Hi, Basic salary should be not less than 40% of your gross, as per your salary structure it is correct.
From India, Hyderabad
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2From India, Hyderabad
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to calculate your basic, you need to know your annual gross amount 40 % of your gross is your basic. the rest comes under the allowances and benefits ,as per the company policy
From India, Hyderabad
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From India, Hyderabad
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Dear Anjals, there is no such rule of basic on Gross; it varies from company to company. However, as per ideal practices, it should be between 25% to 40% of the gross salary. There is no hard and fast rule for that calculation, so we cannot say that the basic should not be less than 40% of the gross salary (as mentioned by M.V.K. Sarath Raja).
Secondly, Medical reimbursement has a standard amount which is $1250, not $1150.
Regards,
Raj Agarwal
Manager-HR
From India, New Delhi
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Secondly, Medical reimbursement has a standard amount which is $1250, not $1150.
Regards,
Raj Agarwal
Manager-HR
From India, New Delhi
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SALARY SHEET CALCULATION.xls
Employee Benefits.doc