# How to calculate salary from pay scale

Posted on 23rd Jul 2018 | 1978 views

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## Calculate salary from pay scale

pay scale (also known as a payment structure ) it is a system that provides information how much an employee is to be paid as a wage/ salary, based on performance and other factors such as the employee's level, designation or status within the employer's organization, the period of time or duration that the employee has been employed, and the difficulty of the specific task employee performed in work.

## Pay scale calculator India

To calculate pay scale in India following components are to be taken into account

Basic Salary

DA (Dearness Allowance)

HRA (House Rent Allowance)

LTA (Leave Travel Allowance)

PF (Provident Fund)

Conveyance Allowance

City Compensatory Allowance

Medical Allowance

Gratuity

In India pay scale or any other transactions made for financial payments from employer to the employee are done according to the guide lines provided under 7th pay commission.

## Calculate salary from pay scale

If an employee pay is 20,000/- Rs total pay or pay scale for month can be calculate as following

Pay: Rs 20,000/-

Total Pay = Pay + Grade pay + T.A Rs 1600 + D.A on T.A Rs. 1712 + DA 120% on (Pay +Grade Pay) + HRA of 15% on Pay

Grade pay is pre fixed payment according to the designation or rank or status of the employee in order to calculate Grade employee should exclude all other allowances from the net salary and also the pay scale because basic pay is equals to sum of Grade pay plus pay scale

Basic pay = pay scale+ Grade pay

Grade pay= basic salary –pay scale

For example to calculate Grade pay

If an employee basic pay= 8000 and pay scale 5000 then Grade pay will be difference between both the values

i.e. Grade pay = 8000-5000= 3000

Grade pay will 3000/- rs of the employee

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