# How to Calculate Basic Salary, its Factors, Different Components & Rules

## Formula to Calculate the Basic Salary

Let’s look at some examples to develop a clear idea –

For instance, the following is the salary chart of an individual named A.

 Components Amount Gross Pay ₹25,000 Basic Salary 40% of gross pay (basic salary calculation formula 1) Basic Income ₹10,000

Conversely, consider an individual named B who has the following salary break-up.

 Components Amount Gross Pay ₹40,000 Basic Salary 50% of the CTC (basic salary calculation formula 2) Basic Income ₹20,000

Now that you know the basic pay calculation formulae, let’s check the factors affecting them.

## Calculate Basic Salary from Gross Salary

Let’s take an example to understand the concept better.

 Factors Amount Gross Salary ₹30,000 HRA ₹2000 DA ₹1000 Conveyance ₹1000 Medical ₹5000 Other Allowance ₹3000 Basic Pay ₹21000

However, if a company applies a percentage formula, it will be 40% of the gross salary or 50% of CTC, as already mentioned.

An individual’s take-home salary will be calculated by removing all the deductions such as pension, TDS, insurance, etc.

One can use a calculator or Excel sheet to find precise results quickly.