Salary Sheet Tutorial Notes
This guide explains the columns and formulas used in the salary sheet to calculate various components of employee compensation.
Columns Description
- NAME: This column lists the names of the employees.
- SALARY: This column shows the basic salary of each employee.
Allowance Calculations
- DA (Dearness Allowance): Calculated as 10% of the basic salary. For example, if the basic salary is in cell B3, the formula will be
=B3*10%. - HRA (House Rent Allowance): Calculated as 8% of the basic salary. For example,
=B3*8%. - TRA (Transport Allowance): Calculated as 6% of the basic salary. For example,
=B3*6%.
Deductions
- PF (Provident Fund): Calculated as 5% of the basic salary. For example,
=B3*5%. - PT (Professional Tax): Calculated as 2% of the basic salary. For example,
=B3*2%. - INS (Insurance): Calculated as 3% of the basic salary. For example,
=B3*3%.
Salary Calculations
- GROSS EARNINGS: This is the sum of the basic salary and allowances (DA, HRA, and TRA). The formula for gross earnings if the basic salary is in cell B3 would be
=B3+C3+D3+E3. - GROSS DEDUCTIONS: This is the sum of all the deductions (PF, PT, and INS). The formula for gross deductions would be
=F3+G3+H3. - NET SALARY: This is calculated by subtracting the gross deductions from the gross earnings. The formula would be
=I3-J3.
Example
For an employee with a basic salary of 15,000:
- DA: 1,500 (calculated as 15,000 * 10%)
- HRA: 1,200 (calculated as 15,000 * 8%)
- TRA: 900 (calculated as 15,000 * 6%)
- PF: 750 (calculated as 15,000 * 5%)
- PT: 300 (calculated as 15,000 * 2%)
- INS: 450 (calculated as 15,000 * 3%)
- Gross Earnings: 18,600 (sum of 15,000 + 1,500 + 1,200 + 900)
- Gross Deductions: 1,500 (sum of 750 + 300 + 450)
- Net Salary: 17,100 (calculated as 18,600 - 1,500)
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