How Is Basic Salary Calculated?

Is it good to have high basic salary?

A higher basic would mean a higher HRA, DA and provident fund contributions.

The DA is taxable and the PF contributions are tax-free but will reduce your take-home salary.

On the other hand, reducing basic pay will mean a lower contribution towards retiral benefits, which may not be good in the long run..

Is base salary the same as gross salary?

The base rate is the minimum amount of earnings that the employee is to receive. The employee may earn additional money by working overtime or by earning incentive bonuses. Gross pay represents wages received. It includes the employee’s base pay and additional earnings and income.

What is the formula to calculate basic salary?

Basic Salary – DefinitionAnnual Basic = Monthly Basic X 12. Formula To Calculate Basic Salary. … Gross Pay = Basic + DA + HRA + Conveyance + Medical + Other. Hence, to calculate your basic from the gross pay you need to do the reverse calculation. … Basic = Gross Pay – DA – HRA – Conveyance – Medical – Other. … Basic = Gross Pay X Percentage.

What is the percentage of basic salary?

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.

How can I download my salary slip?

1. Go to View Payslips and select the month for which you want to download the pay slips. 3. If you want to download pay slips of only selected employees, check the boxes before their names or check the box in the header to select all employees whose names are displayed on first page.

How can I see my salary slip?

Open PIFRA salary slip registration web page and enter all your details like CNIC number, date of birth and mobile number. Now enter your email address and you will receive the payslip via email.

What is fixed salary?

Fixed monthly salary = basic monthly salary + fixed monthly allowances. Basic monthly salary: This is payment that does not vary from month to month, regardless of employee or company performance, and regardless of whether the employee takes medical or personal leave.

What is the basic salary?

Basic salary is the total amount (before any deductions) paid to employees plus the allowances. It is a fixed amount that is paid to employees by their employers in return for the work performed.

How is monthly salary calculated?

Monthly payout calculation Based on the employee’s monthly salary we will calculate an hourly wage. Hourly wage = Monthly salary/158 hours. The exact payout is made before the 5th of every month and is based on the exact hours worked during the previous month.

What is the salary slip?

A salary slip or payslip is a document issued monthly by an employer to its employees. A salary slip contains a detailed breakdown of employee salary and deductions for a given period. This document can be either a printed hard copy or mailed to the employees.