1. What is Gross Salary?

Gross Salary is the total salary paid to an employee before any deductions. It includes basic pay, house rent allowance (HRA), and other allowances like dearness allowance (DA), transport allowance, etc.

2. How Does the Calculator Work?

The calculator uses the salary formula:

Where:

• Basic Pay — The fixed component of salary (INR/year)
• HRA — House Rent Allowance (typically 40-50% of basic pay)
• Other Allowances — Additional components like DA, transport, etc.

Explanation: The formula sums all salary components to calculate total earnings before deductions.

3. Importance of Salary Calculation

Details: Understanding gross salary helps in financial planning, tax calculations, and comparing job offers. It's the basis for calculating deductions like PF, taxes, etc.

4. Using the Calculator

Tips: Enter basic pay in INR/year, HRA amount (typically 40-50% of basic), and other allowances. All values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the typical HRA percentage?
A: HRA is usually 40-50% of basic pay in India, depending on the city (metro vs non-metro).

Q2: What are common other allowances?
A: Common allowances include Dearness Allowance (DA), Transport Allowance, Medical Allowance, and Special Allowance.

Q3: Is gross salary the same as CTC?
A: No, CTC (Cost to Company) includes gross salary plus employer contributions to PF, gratuity, and other benefits.

Q4: How does basic pay affect salary structure?
A: Many components (like HRA, PF) are calculated as percentages of basic pay, making it a crucial part of salary structure.

Q5: What's the difference between gross and net salary?
A: Gross salary is before deductions, while net salary (take-home) is after deducting taxes, PF, etc.