The word salary has been derived from the Roman letter “salarium” which was given to the Roman soldiers in ancient times in addition to the wages they were entitled off. The salary calculator is really helpful and vital to calculate and know the growth status of the employee and to estimate the additions and deductions which are being made by the employer in one’s employee salary. The salary consists of various components and there is a difference between the gross salary received and the net salary received. An employee salary can be structured in the following manner:-
A formula for Salary Calculator is given by:
The salary component also varies as per the company’s policies, some companies make some deductions other than this deduction whereas some companies do not make certain deductions in their salary. As per the Indian Labour law, we operate in cost to company model where there are most deductions in a salary if the person is employed under a formal sector whereas, informal sector employees can take away their full salary quota.
Mr. X. has a salary the following salary components. Calculate the Gross Salary and Net Salary of Mr. X.
Gross Salary is calculated as:
Net Salary is calculated as:
The Gross salary of Mr. X. is the summation of Basic, HRA, Transport Allowance, PBP allowance, and statutory Bonus which comes around 57,829 whereas net salary is computed as Basic Salary minus Income tax and Provident Fund which comes around 53,429.
Salary depends upon your years of experience. One who is working in the same company from the starting of his/her career may not get that much of hike when compared with who has switched a job, staying with the same company can give you a position. If I am having 7 years of experience in the same company my salary could be 9LPA, my friend has changed a job when he has only 6 years experience his hike was 40% so his salary is more than me.
And also you can use this salary calculator and this will also help you to see the future salary calculation.
Here the basic salary will be calculated as per follows Basic Salary + Dearness Allowance + HRA Allowance + conveyance allowance + entertainment allowance + medical insurance . The deduction will be Income tax and provident fund under which the net salary comes in result
To avoid human errors many organization use payroll software for employee salary calculation and tax deduction.
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