1. What is Gross Salary?

Gross salary is the total salary paid to an employee before any deductions like taxes, provident fund, professional tax, etc. It includes all components like basic salary, allowances, and bonuses.

2. How is Gross Salary Calculated in Karnataka?

The standard formula for gross salary is:

Where:

• Basic Salary — Core salary component (usually 40-50% of CTC)
• HRA — House Rent Allowance (typically 40-50% of basic salary)
• Special Allowance — Flexible component decided by employer
• Other Allowances — May include transport, medical, etc.

Note: In Karnataka, professional tax deductions apply based on salary slabs.

3. Importance of Gross Salary Calculation

Details: Understanding gross salary helps employees know their total earnings before deductions, negotiate better salaries, and plan finances. Employers use it for payroll processing and compliance with Karnataka labor laws.

4. Using the Calculator

Tips: Enter all salary components in INR. The calculator sums them to give annual gross salary. For monthly salary, divide the result by 12.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is before deductions; net salary is take-home pay after all deductions.

Q2: Are bonuses included in gross salary?
A: Yes, all regular bonuses should be included in Other Allowances.

Q3: How does Karnataka professional tax affect gross salary?
A: Professional tax is deducted from gross salary (max ₹200/month in Karnataka).

Q4: What's the typical basic salary percentage in Karnataka?
A: Usually 40-50% of CTC, but varies by company policy.

Q5: Is PF calculated on gross salary?
A: PF is calculated on basic salary plus dearness allowance (if any), not full gross salary.