Professional Documents
Culture Documents
HR Formulas
HR Formulas
Salary Calculations
1.
Salary Calculations
How House Rent Allowance (HRA) is
calculated?
HRA 50% of Basic (Chennai, Kolkatta,
Delhi, Mumbai )
HRA - 40% of Basic if Population >
10lakhs & 10% of Basic if Population <
10 Lakhs (Other Cities)
Salary Calculations
How Leave Travel Assistance is calculated?
Salary Calculations
How Bonus is calculated?
Bonus is calculated from a rate of 8.33% to a
maximum of 20%(employers wish) of an
employees salary or wage for the days he/she
has worked during that accounting year.
Maximum Salary considered will be Rs.3500/per month
If the basic exceeds Rs.10000/- bonus is not
applicable
Salary Calculations
How Leave Encashment is calculated?
Leave encashment is calculated
as below
a. In case of company:
Basic x no of leave balance
30
b. In case of factory:
Gross x no of leave balance
26
Salary Calculations
How PF is calculated?
PF:1. Employees share
Salary Calculations
How Employee State Insurance (ESI) is
calculated?
ESI employees whose gross salary is Rs.10000/and below are eligible for ESI
Employees share:1.75% on salary (gross)
Employers share:4.75% on salary (gross)
Salary Calculations
How Gratuity is calculated?
Gratuity is paid after 5 years of completion of
service
The amount does not exceed Rs 3,50,000/ Formula for calculating gratuity
Salary (Basic + DA) x 15 days x No. of yrs
26
Simple calculation= 4.81% of basic
Salary Calculations
How Pension is calculated?
- Pension Amount =
(Pensionable Service (No. of Years) * Pensionable Salary )
70
How Attrition is calculated?
- Resigned employee
x 100
No. of existing employees
(done either monthly or yearly depending on the company)
Salary Calculations
How Full and Final Settlement is calculated?
Payable to Employee:
Salary Calculations
How Professional Tax is Calculated?
Professional Tax is a state based Taxdeduction is from the gross income
Duration of deduction is half year
1st day of April to 30th September
1st day of October to the 31stMarch of a
year.
PT is deducted slab wise-fixed by the state
government (it varies according to the salary
range)
Salary Calculations
How salary is calculated?
Salary is been calculated on the basis of
number of days in that particular month,
For January it will be 31 days, for April
would be 30 days and for February it
would be 28 or 29 days.
Workmens Compensation
How WC is calculated?
Case 1) Death of Employee WC Eligibility is 50%
The calculation is Check workers Age and his Factor
Maximum Wages x 50% x Factor
Maximum Eligibility for Fatal Injury - Rs.4,57,080
- Case 2) Permanent Total Disablement - WC Eligibility is 60%
The calculation is Check workers Age and his Factor
Maximum Wages x 60% x Factor
Maximum Eligibility for Permanent Total Disablement - Rs.5,48,496
- Case 3) Temporary Total Disablement
First 3 days are excluded
The calculation will be No. of days 3/15*25%
up to a period of 5 years
- Case 4) Maximum Eligibility for Permanent Partial Disablement According to incapacity caused
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Patricia