Other(Special) Allowances (Balance allowances)
HRA (40% of the basic wage for nonmetro cities)Ĭonveyance Allowances ( 1600 Rs in urban areas) Step 5: In another column add deductions such as EPF, professional tax, ESI/health insurance, TDS, salary advances, etc… Salary calculation formula for the total paid days = (Original gross salary/Total days in the month) X Paid days in that month. The sum of all the earnings will be called the actual gross salary of the employee.
Step 4: Now in one column add all the earnings of the employees such as basic wage, house rent allowances, conveyance allowances, medical allowances & special allowances.
