Questions Business and Entrepreneurship

How can we calculate the salary ?

3 Answers Airtract Airtract Date Sorting




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:-

  • Basic Salary
  • House Rent Allowance
  • Transport Allowance
  • FBP Allowance
  • Statutory Bonus
  • Provident Fund
  • Income Tax
  • Insurance

A formula for Salary Calculator is given by:

Salary = Basic + HRA + Transport Allowance + FBP Allowance + Bonus – Provident Fund – Income Tax – Insurance

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.

Salary Formula – Example #1

Mr. X. has a salary the following salary components. Calculate the Gross Salary and Net Salary of Mr. X.

Salary Formula Example 1-1

Gross Salary is calculated as:

Calculation of Gross for Example 1

  • Gross Salary = 18,775 + 9,387 + 1,600 + 26,184 + 1,883
  • Gross Salary = 57,829

Net Salary is calculated as:

Calculation of Net Salary for Example 1

  • Net Salary = 57,829 – (2,100 + 2,300)
  • Net Salary = 57,829 – 4,400
  • Net Salary = 53,429

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.


shikha singh

A software developer

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.



Sheetal Kamble

I like to help businesses in their search for Software

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.

Airtract Maria Janes -

If you are interested to know more about full-stack developer salary and all the details about the aspects that influence it, read this exciting article: <a href=""></a>

Vote0 Date:13-07-2021

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