Ideally, the gross salary is a sum of basic pay before any deductions are made or added with allowances.
On the other hand, basic pay is a fixed portion of an individual’s monthly salary before all deductions.
The formula for gross pay is as follows.
Gross pay = Basic pay + HRA + DA + medical + conveyance + other allowances
However, if an individual knows the gross pay, then they can easily find the basic salary with the given formula
Basic salary = Gross salary - DA - HRA - conveyance - medical - other allowances
However, if an employment contract defines gross pay as a percentage of basic salary, then the formula will be -
Basic pay = Mentioned percentage x Gross pay
This is the right formula to calculate basic salary percentages.