A salary or wage calculated by an employee is an amount that is paid by an employer for the time and work they have contributed to the company. The basic salary of an employee is the fixed or particular amount paid for the work done by them.
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The basic salary is calculated before any deductions or increments due to overtime, allowances, bonuses are added.
The Payroll calculator below would calculate your salary for the year based on your days worked and months factoring in how much you earn per month.
Salary Calculator
Salary calculator
| Duration | Salary |
|---|---|
| Per Hour | x |
| Per Day | x |
| Per Week | x |
| Bi-Week | x |
| Semi Month | x |
| Per Month | x |
| Per Quarter | x |
| Per Year | x |
Salary: |
per |
Hours | |
Days |
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Salary
have contributed to the company.
Basic Salary
The basic salary remains the same, irrespective of the other aspects of Cost to Company. The total of the basic salary shall be part of the in-hand salary.
If you are on a fixed income,( a contract signed that pays per month ) it is paid regularly and the amount is normally fixed irrespective of the quality or quantity of work performed.
Salary is an annual figure that is determined in the budget by the employer before hiring employees through a contract that is usually renewed every year. And providing an increment ( Normally Christmas or Annual Bonus) to the employees depending on their performance.
Wages
Wages and salaries are not the same; there are technical differences between the two.
Salary can be best explained as compensation given to employees on an annual basis while Wage is provided to the employees based on the number of hours worked multiplied by an hourly rate of pay. Wage-earners are non-exempt which means they get 1.5 times their pay for hours they have worked after exceeding 40 hours a week, basically known as overtime pay.
This benefit is generally not available for salaried employees but still, wage-earners are known to earn less than salaried employees.
For example, someone who works in a café gets ‘wage’ while a person who works in a professional setting in an office gets ‘salary’. So, salaried persons are often considered more reputable in society.
How to Calculate Salary/Wage per Month?
Knowing the right amount of salary or wage that you get per month or year without going through any huge calculations is essential. And for that matter, you are going to need a monthly salary or wage calculator.
Normally I calculate salaries and wages periodically such as monthly, semi-monthly, bi-weekly, weekly, etc.
The Salary Calculator is a tool that helps you calculate your monthly take-home salary after all the deductions. The amount calculated is the result of unadjusted and adjusted figures taking the vacation days and holidays into consideration.
To know about the take-home salary, and how the calculator works, let’s know about the basic salary, gross salary, differences between basic salary and gross salary, Cost to Company other things that go into calculating salary or wage.
Miscellaneous Benefits, Tax and Deductions
Apart from getting salary and wages, employees also get some other financial benefits that don’t come in the form of a paycheck.
Usually, salaried employees get more benefits as compared to waged workers. These miscellaneous benefits come in the form of employer-contributed healthcare insurance, employer-contributed retirement plans, payroll taxes, bonuses, company discounts, unemployment tax, paid holiday/vacation days, etc.,.
Payment of salary workers may be based on constitute 4 main components – Basic pay, Allowances, Deductions, and IT Declarations.
A. Gross Pay
Gross Pay is the sum of Basic pay + Allowances.
About the gross salary, it is the amount an employee has made working for the company in a year. It is the amount that does not include any deductions like income tax, professional funds, medical insurance, etc. But it does include bonuses, holiday pay, overtime pay.
B. Net Pay
Net Pay is the difference between Gross Pay – (Deductions + Total TDS). Total TDS is the sum of TDS, Surcharge, Health & Education Cess.
The net salary which is also referred to as take-home salary is the amount paid to the employee actually takes home after the deductions like taxes, provident fund, and others are done from it.
Net salary = Gross salary – public provident fund – professional tax.
C. Basic Pay
Basic Pay is 50% of Gross salary (Gross * 0.5)
D. Allowances
These benefits can be equivalent to a good amount in terms of money, hence people consider these benefits as well when they look for a job.
Even if you are a self-employed contractor who gets paid as per their rates and that too hourly, daily, or weekly, etc. you can use this online salary calculator too. Although the contractors don’t get the extra benefits, their pay rates are higher than or equal to those getting salaries.
In most countries, the formula for salary calculation is:
Take-Home Salary = Gross Salary – Income Tax – Employee’s PF Contribution(PF) – Prof. Tax. Gross Salary = Cost to Company (CTC) – Employer’s PF Contribution (EPF) – Gratuity. Gratuity = (Basic salary + Dearness allowance) × 15/26 × No. of Years of Service
You can calculate take-home salary by deducting income tax, employees provident fund, professional tax from gross salary.
CTC implies Cost to Company which includes all monetary and non-monetary benefits spent on an employee by the company and take home salary is the salary the employee takes home after all deductions.
Gross salary is calculated by subtracting performance bonus whether it’s fixed or percentage from the cost to the company by a salary calculator.
Cost to Company (CTC), is the amount that a company uses directly or indirectly for hiring and retaining the services of an employee. In other words, Cost to Company is the total salary package provided to the employee. It indicates the total expense an employer spends on an employee in the period of one year.
An employee’s gross salary includes the benefits such as HRA, conveyance allowance and medical allowance.
Net salary = Gross salary – All the deductions like income tax, pension, professional tax, etc. Net salary is commonly called Take-home salary as well.
So, several factors have to be considered to calculate someone’s salary, wage, or pay rate for a month.
Other factors used to calculate your salary
| Direct Benefits | Basic salary |
| Direct Benefits | Conveyance allowance |
| Direct Benefits | Dearness allowance |
| Direct Benefits | House rent allowance |
| Direct Benefits | Medical allowance |
| Direct Benefits | Leave travel allowance |
| Direct Benefits | Vehicle allowance |
| Direct Benefits | Telephone or mobile phone allowance |
| Direct Benefits | Incentives or bonuses |
| Direct Benefits | Special allowance |
| Indirect Benefits | Food coupons |
| Indirect Benefits | Company leased accommodation |
| Indirect Benefits | Interest-free loans |
| Indirect Benefits | Income tax savings |
| Indirect Benefits | Health and life insurances premiums are paid by the employer |
| Savings contributions | Super annulation benefits |
| Savings contributions | Employer provident fund |
How to Use Online Salary Calculator to Determine your Salary or Wage?
The online salary calculator can help you calculate your monthly salary as well as what amount you are getting as a bonus from your company.
There are so many things that go into calculating the Yearly CTC.
This salary calculator will let you know your basic pay and the amount of HRA, MA, and TA that you are getting per month. This is an annual salary calculator that will bifurcate your yearly salary so that you can know what amount of income you are going to take home from your current job.
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