The amount of HRA depends on the city or town where the employee lives and their salary. House Rent Allowance (HRA) is a reimbursement for the rent that the employee pays for the accommodation.

So private companies may or may not pay DA to their employees. Note – DA is mandatory for government employees but optional for private employers. The amount of dearness allowance payable is determined by the government, based on the consumer price index (CPI). It is a fixed percentage (usually 30-40%) of the employee’s basic salary and is paid in addition to the regular salary.ĭearness allowance is a cost-of-living adjustment paid by the government to government employees and pensioners. It is the starting point of any calculation of gross pay.ĭearness allowance (DA) is a component of salary that is paid to employees to offset the impact of inflation. Usually, it is fixed at 35-40% of the total salary. Useful Salary Slip Formulas 1īasic wage + HRA + Conveyance + Medical + Special allowancesĠ.75% of employee gross wage.Also read – How to earn money online for students in India Income Components of Salary SlipĮmployees’ basic salary is a fixed amount of monthly salary. Step 7: Now take out the printout of the salary slip and sign it and distribute to employees. Step 6: Now subtract all the deductions from the earned gross salary of the employee in that particular month, the balance amount will be the net salary of the employee. 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. To calculate total paid days subtract LOPs from the total days in the month.

Step 3: Now enter the number of days in the month and the LOPs (Loss of Paydays) of the employee. Step 2: Now enter the employee’s general details like name, designation, department, date of joining, gross salary, bank details, and any other required information as per your choice.

Step 1: To create a salary slip/pay slip open a new Excel sheet and write your company name, address, and payslip month & year in the first three rows of the Excel file. Download Excel How to Create a Salary Slip in Excel

Ctc salary slip format