A. Earnings Components
| Components | Description | Excel Formula |
|---|---|---|
| 1. Gross Salary | You need to first decide a lump sum amount as Gross Salary | Adjustable Amount |
| 2. Basic & DA |
Basic & DA is calculated as 60% of Gross in metro cities and 50% in non-metro cities. Minimum Wages Rule: If the % based Basic & DA is lower than the applicable State Minimum Wages, then the Minimum Wages amount (as notified by the state) must be adopted. |
Gross × 60% |
| 3. HRA | HRA is typically 40% of Basic & DA. As per compliance, a minimum of 5% of Basic & DA must be allocated to HRA. | Basic & DA × 40% |
| 4. Other Allowance |
Other Allowance is calculated as: Gross – Basic & DA – HRASometimes, this remaining amount is split equally into Medical, City, and Special Allowances. |
Gross – Basic & DA – HRA |
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