A. Gross Salary
Gross Salary refers to the total of all earnings before any deductions. It serves as the foundation for calculating other salary components such as Basic Pay, HRA, Allowances, and statutory deductions like PF, ESI, and Income Tax.
📌 Why Gross Salary Comes First:
- Basic Salary is derived from Gross — usually 50% to 60% depending on city classification (metro or non-metro).
- You must first decide a lump-sum Gross Salary based on your budget or desired Net Pay.
- Then, apply salary structure rules and make necessary adjustments to arrive at the final Net Pay, bonus eligibility, and statutory contributions.
✅ Conclusion:
Gross Salary is the first and most crucial input in creating a salary breakup. It must be manually defined before beginning any component-wise calculation. All other figures are structured around it.
Gross Salary is the first and most crucial input in creating a salary breakup. It must be manually defined before beginning any component-wise calculation. All other figures are structured around it.
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