User Guide: Salary Calculator

Welcome to the Salary Calculator! This tool helps you estimate your new salary based on the 7th Pay Commission guidelines. You can choose between two calculation methods: Net Increase Percentage or Fitment Factor. Follow the steps below to use the calculator effectively.

1. Choose Calculation Method:

• Net Increase Percentage: This method calculates the new Basic Pay by applying a specified percentage increase to your current Basic Pay plus Dearness Allowance (DA).

• Fitment Factor: This method calculates the new Basic Pay by multiplying your current Basic Pay by a predefined fitment factor.

2. Input Your Details:

• Basic Pay: Enter your current Basic Pay in ₹.

• DA Percentage: Enter the current Dearness Allowance percentage.

• HRA Percentage: Enter the current House Rent Allowance percentage.

• TA/DA Percentage: Enter the current Travel Allowance/Dearness Allowance percentage.

• Deduction Percentage: Enter the NPS/PF/GPF/UPS Deduction percentage.

• Optional Allowances: Enter any additional allowances as a percentage of Basic Pay.

3. Dynamic Input Fields:

• Depending on your chosen calculation method, the relevant input fields will be displayed:

  • For Net Increase Percentage:

    • Net Increase Percentage: Enter the percentage increase in Basic Pay.

  • For Fitment Factor:

    • Fitment Factor: Enter the fitment factor value (e.g., 2.57).

4. Calculate Salary Hike:

• After entering all the required details, click the “Calculate Salary Hike” button to compute your new salary details.

5. Understanding the Output:

The calculator will display the following information:

• Current Gross Salary: The total of your current Basic Pay, DA, HRA, TA/DA, and Optional Allowances.

• Current Net Salary: The amount after deducting NPS/PF/GPF/UPS from the Gross Salary.

• Current Deductions (NPS/PF/GPF/UPS): The total deductions based on the Deduction Percentage.

• New Basic Pay: Calculated based on your chosen method.

• New HRA: Calculated as per the new Basic Pay and HRA Percentage.

• New TA/DA: Calculated as per the new Basic Pay and TA/DA Percentage.

• New Optional Allowances: Calculated as per the new Basic Pay and Optional Allowances Percentage.

• New Gross Salary: The total of the new Basic Pay, HRA, TA/DA, and Optional Allowances.

• New Deductions (NPS/PF/GPF/UPS): The total deductions based on the Deduction Percentage applied to the new Gross Salary.

• New Net Salary: The amount after deducting NPS/PF/GPF/UPS from the new Gross Salary.

• Gross Salary Difference: The increase in Gross Salary compared to the current Gross Salary.

• Net Salary Difference: The increase in Net Salary compared to the current Net Salary.

6. Example Calculation:

Input:

• Basic Pay: ₹25,500

• DA Percentage: 63%

• HRA Percentage: 10%

• TA/DA Percentage: 5%

• Deduction Percentage: 10%

• Fitment Factor: 2.57

• Optional Allowances: 5%

Output:

• Current Gross Salary: ₹46,665.00

• Current Net Salary: ₹42,508.50

• Current Deductions (NPS/PF/GPF/UPS): ₹4,156.50

• New Basic Pay: ₹65,535.00

• New HRA: ₹6,553.50

• New TA/DA: ₹3,276.75

• New Optional Allowances: ₹3,276.75

• New Gross Salary: ₹78,642.00

• New Deductions (NPS/PF/GPF/UPS): ₹6,553.50

• New Net Salary: ₹72,088.50

• Gross Salary Difference: ₹31,977.00

• Net Salary Difference: ₹29,580.00

7. Formula Explanation:

• For Net Increase Percentage:

  • New Basic Pay = (Basic Pay + DA) × (1 + Net Increase Percentage)

• For Fitment Factor:

  • New Basic Pay = Basic Pay × Fitment Factor

8. Step-by-Step Guide:

1. Select Calculation Method: Choose between Net Increase Percentage or Fitment Factor.

2. Enter Details: Input your current salary components and percentages.

3. Input Calculation Parameter: Depending on your choice, enter either the Net Increase Percentage or Fitment Factor.

4. Calculate: Click the “Calculate Salary Hike” button to view your new salary details.

9. Dynamic Allowances:

• You can add or remove optional allowances as needed. The calculator will adjust the calculations accordingly.

10. Deductions:

• The calculator includes NPS/PF/GPF/UPS contributions as percentages of (Basic Pay + DA).

11. Difference Calculation:

• The tool shows the difference between the old and new Gross Salary and Net Salary, helping you understand the impact of the salary hike.

12. User-Friendly Interface:

• The calculator is designed with clear input fields and results, making it easy to use and understand.