What is the formula to calculate monthly salary?
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What is the formula to calculate monthly salary?
For example, if the total monthly salary of an employee is Rs 30,000, and if the employee joins an organization on September 21, the employee will be paid Rs 10,000 for the 10 days in September. Since September has 30 calendar days, the per-day pay is calculated as Rs = Rs 1,000.৩ জুন, ২০১৫
What is basic salary percentage?
Usually, basic salary is 40% to 50% of CTC (Cost to Company). Statutory components such as bonus, PF, gratuity and other benefits are determined on the basis of the basic salary. Any increase or decrease of basic salary can affect an employee’s CTC. Is basic salary taxable?
What is the minimum basic salary?
6500 to Rs. 15000. Employers have to revise the PF deductions from September 2014 onward for all employees whose basic salary is less than or equal to Rs. 15000.
How do you calculate CTC break up?
How to make a CTC Breakup?
- CTC = Gross Salary + Gratuity + Employer Contributions (PF /ESIC) What is Gross Salary?
- Gross Salary = Basic Salary + HRA + Bonus + Other Allowances.
- Net Salary = Gross Salary – Income Tax – PF – ESIC – Other Deductions.
- Basic Salary.
- Conveyance Allowance.
- Statutory Bonus.
- Books and Periodicals.
- Provident Fund (PF)
Why gratuity is paid?
Gratuity is the monetary amount which is payable to the employee of an organisation under the Payment of Gratuity Act 1972. This is mainly paid to the employee as a token of appreciation for his/her services towards the company.
What is DA in gratuity?
Dearness allowance is generally a part of government employee’s salary. The gratuity calculation formula is as under. Monthly salary*15/26* Number of years of completed service or part thereof. In this case, if an employee has covered more than 6 months of service, it will be treated as a full year.
Do private employees get gratuity?
Employees who have been employed in the company for five years or more are paid gratuity. Gratuity and its rules and regulations are governed by the Payment of Gratuity Act 1972. You are eligible for gratuity if you meet the following conditions: Your employer is covered under the Payment of Gratuity Act 1972.
Can I get gratuity if I resign?
The Payment of Gratuity Act, 1972, states that an employee is eligible to get gratuity only after he or she has worked with an organization for at least five years. The employee stands to receive the gratuity amount on his or her superannuation, or at the time of retirement or resignation.
