How to calculate salary from pay scale

Posted on 23rd Jul 2018 | 1247 views

4 avg. rating (80% score) - 1 votes

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

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/-

Grade pay Rs: 4600/- (G.P)

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 calculator India

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

0 Comments on How to calculate salary from pay scale

Comment as a guest:

POPULAR POSTS

What is Appointment letter Format?

26th Jun 2018

Top 10 facts why you need a cover letter?

08th Jun 2018

Are you looking for a job in Event Management?

28th May 2018

Pharmaceutical job opportunities on rise in Gulf

23rd May 2018

MNC Vs Startup: Are you Confused to Choose between?

09th Aug 2017

Perspectives of Unemployment in India

01st Jul 2013

Have your Say!

View All

How consistently does your organization reward you for good work?


Very difficult

Reasonably consistently

Not at all consistently

Vote

Press Corner

View All

All rights reserved © 2018 Wisdom IT Services India Pvt. Ltd DMCA.com Protection Status