Every salaried employee should know about what is basic salary, what is gross salary and what is the difference between basic salary vs gross salary, and how much basic salary are you getting and how to calculate basic salary. Here you can find complete details about basic salary calculation formula in Excel.
What is Basic Salary
Basic salary is a part of the total salary which doesn’t include any other allowances. All the other allowances along with basic salary will be known as gross salary. So the basic salary is a base part of the total salary.
The basic salary percentage varies from one company to another company. But mostly the base pay of an employee should be equal or more than the minimum wage fixed by the state government. Some companies will follow the minimum wage rule to fix the basic salary.
For example, if the minimum wage for skilled labor is 13000 in a state then the basic salary for skilled labor in that particular state should be 13000 or above 13000 Rs. Keeping this in a view employers need to fix the minimum wage.
There is no particular basic salary calculation formula, but we can calculate it if we know the gross salary and basic pay percentage fixed by the employer.
What is Gross Salary
Gross salary is aggregate of the total amount of pay that an employee will get in every month, it includes all the allowances including basic pay. The simple definition of gross salary is basic salary plus allowances like dearness allowances, house rent allowances, medical allowances, conveyance allowances, and special allowances, etc.
Basic Salary Calculation Formula in Excel
- Most of the companies will fix the basic salary between 40-60% of gross salary. (But remember after calculating the amount, the basic pay should be more than minimum wages fixed by your state govt if you get less amount then increase the percentage).
- In order to prepare basic salary calculation formula in Excel, we need to know the gross salary and basic salary percentage fixed by the company.
- For example, if the gross salary of an employee is 45000 Rs and basic salary percentage fixed by the company is 40% then the basic salary will be:
Basic salary = 40% of gross salary = 45000 X (40/100) = 18000 Rs
Download Basic Salary Calculation Excel Sheet
Basic Salary Calculation By Using EPF contribution
- We can calculate the basic salary of an employee if we know the PF contribution. But this will be applicable to employees whose monthly basic pay is below 15000 Rs. Because up to 15000 Rs basic pay PF is mandatory.
- As we know every employee whose monthly basic salary is below 15000 Rs should need to pay 12% of their basic salary towards employee provident fund. So if we know the PF contribution then we can calculate the basic salary.
- For example, if 12000 Rs was deducted from the salary of an employee towards employee provident fund, then his basic salary will be calculated as follows
For 15000 Rs basic salary PF contribution = 15000 X 12% = 1800 Rs
i.e for 1800 PF deduction basic salary = 15000
So for 1200 PF deduction basic salary =?
Formula = (1200/1800) X 15000 = 10000 Rs.
Also read: How to calculate PF and ESI with example
Basic salary calculation from CTC
If you are looking to know about how to calculate basic salary from CTC then you can follow the above steps. Because in your CTC you can know how much PF deduction you have. Based on that PF deduction you can calculate your basic salary from CTC. If your basic is more than 15000 Rs and you don’t have PF deduction then you have to calculate your base pay based on your gross salary.
Hi my basic = 2100
Food allowance =320
– – – – – – – –
2430/-
I have been in the company 7 months then I resigned my job how much I’ll get clearence pls provide me some calculations.
17000*40%= 6800 Basic Salary
It depends how much percentage they deducted from you gross salary,
in some organization 40-60% they are deducting.
Sir, my actual salary is rs 17000 on account credited so sir i just want to know what will be my salary slip calculate – basic – allowance?
The basic salary will be 40 – 60% of the total compensation. (The percentage is fixed by every company during the preparation of their salary structure).
It is adjusted as per the minimum wage in the state.
(If you are preparing your own salary slip, consider 50% of 17000 which is 8500 Rs.)
Dear sir,
I need your help
My total grose salary 65k per month
I want to payment slip please provide to me.
Thanks
Hi, i need to know how to calculated salary by percentage for eg, if an employee is getting 14,40,000 per annum, how do it calculated it
Components Per Annum Per Month
Basic 8,64,000 72,000
HRA 3,45,600 28,800
Conveyance 1,15,200 9,600
Professional Development Allowances 1,15,200 9,600
COST TO COMPANY 14,40,000 1,20,000
Sir my monthly salary is Rs 14000. So i just want to know what will be my basic salary ?
It may be 40-50% on your basic salary, the actual percentage is fixed by your company.
Sir, my actual salary is rs 14000 and the company person is deducting 480 rs and rs 480 from there side as pf fund so sir i just want to know what will be my basic salary?
Your basic wage is 4000 Rs,
12% PF on 4000 Rs is 480 Rs.
Basic salary calculate on the basis of gross salary, but i have one doubt …in which gross salary we calculate that month of gross salary or fixed gross salary.
Generally, the basic salary should be equal or more than the minimum wages fixed by that state govt, according to that we have to fix the percentage on gross salary.
You should calculate the basic wage on your monthly gross salary.
sir how we calculate the minimum wages which is fixed by the state govt is there any formula ? please define with example
You don’t need to calculate minimum wages, your state government will release the circulars every year.
You can find them on your state’s labour department website.
I want to calcute my gross salary from my net salary how to calcute it ? any formula for it or what is the process ?
Hi Mr Ganesh, Gross salary = basic salary+ DA(Dearness Allowances) + HRA + Medical Allowances+ Special Allowances+ Other allowances
Can you please provide a Excel sheet to calculate BASIC, HRA, Conveyanvce, Medical Allowance, Special Allowance, Other Allowance PF, Professional Tax, Transport Deduction, Training and development?
BASIC SALARY WILL BE R 9 500 PER MONTH
IN A MONTH I WILL BE WORKING MONDAY TO FRIDAY INCLUDING TWO WEEKEND IN A MONTH
HOW DO WE CALCULATE THIS R9 500
Hi Jum Sethole,
You have to divide the basic salary by total days in the month, for example in July we have 31 days, so per day basic salary = 9500/31= 306.45 Rs. If the employee has 2 LOPs then deduct 2 days basic salary. You should prepare an excel sheet for the salary statement, it will calculate everything automatically. For weekends also you need to pay.