Loading...

Salary Calculator

Sponsored Links:

When you are calculating your salary, you will have to be aware of the fact that there are many aspects involved in this salary calculation. Hence, before you get to know as to what are these aspects, it would be an added advantage if you also know the terminology which is used when salary is in question.

Salary Calculator

Monthly gross pay:
Number of working days(month):
Number of days worked(month):
Salary:

1,130 total views, 1 views today

Terminology related to the salary calculator

CTC is a term which means cost to company & it denotes the complete salary package of the employee. In other words, CTC is used in order to tell that it is the total amount of the money an organisation spends in a year on the employee. While, basic salary means that it is an amount which is paid to the employee before the extras are either added or deducted from the salary. Financial year is the year which is taken in to consideration for either accounting or taxing purposes.

Conveyance allowance is at times also known as the transport allowance & it is usually said to be the allowance that is given to the employees so that it can compensate the travel which they undertake from their place of residence till the work location. On the other hand, HRA is nothing but the House Rent Allowance which is paid to the employees as part of their salary. This House Rent Allowance also comes along with the tax benefits; whereas professional tax is usually a tax which is collected by the State Government especially in India.

In addition to this, LTA is the abbreviation of the leave travel allowance & it is one of the most common form of the tax exemptions given to the employees which is given by the employers. Finally, another aspect of salary is mediclaim which is nothing but a mediclaim insurance which in – turn is the hospitalisation benefit policy given by not only the public but also the private sector general insurance companies. And this is the policy which takes care of the medical expenses.

Sponsored Links:

How to use a salary calculator?

Calculating the salary is now very easy. But to have the perfect results it is advised to the readers that they keep reading this page to know more about the steps to calculate the salary. In the 1st field of the salary calculator, you will have to mention the monthly basic pay following which you will be able to select the financial year from the drop down menu or you would be required to type the year. In the next field, you would have to enter the CTC on an annual basis apart from selecting the options as in whether you are a senior citizen or live in a metro city. In addition to this, when you mention the monthly basic as well as the annual cost to company details, you would be required to click on the tab which reads calculate. The system shall then automatically calculate the salary & let the individual know as to what their salary is.

Salary calculator formula

One thing to be known by all especially before they start their salary calculations is that the formula for calculating salary that has been given here is a general formula & that a few organisations can add up some other things when calculating salary.

Case 1: When the salary is calculated for incomplete month of work, then the following formula is applicable –

\(\frac{(monthly \quad gross\quad rate \quad of\quad pay)}{(\quad total\quad number\quad of\quad working\quad days\quad in\quad a\quad month\quad) } \times \, total\,number\,of\,days\quad employee\,worked\,in \,a \,month\)

Case 2: When the basic rate of pay for a day is to be calculated for a monthly – rated employee then the following formula is generally used –

\(\frac{12 \times monthly \, basic \,rate \, pay} {52 \times average \,number \,of \, days \, when\quad the\quad employee\quad is\quad required\quad to\quad work \quad (weekly)}\)

\quad the\quad employee\quad is\quad required\quad to\quad work \quad (weekly)\)

Case 3: In order to calculate the gross rate of the pay for a day for a monthly – rated employee, the below given formula is used –

\(\frac{12 \times monthly \quad basic \quad rate \quad pay} {52 \times average\quad number\quad of\quad days\quad when\quad the\quad employee\quad should\quad work\quad in \quad a \quad week}\)