What is the Meaning of Salary?
Salary refers to fixed compensation (including variable components), offered by employer to an employee. It is pre-defined in the appointment letter and mutually agreed upon by both parties at time of recruitment based on roles and responsibilities along with the position offered.
Why is Salary Calculation Important?
Salary calculation is important as it includes multiple components like health insurance, EPF funds, tax deductions, bonuses and much more and calculating these components manually is prone to errors.
Accurate salary calculation is mandatory for HR professionals and financial departments, to ensure employe satisfaction- that’s why correct salary calculation is important.
Proper calculation of salary also helps in budgeting and financial planning for both employees and their people. Additionally, it ensures statutory compliance and reduces risks of legal penalties.
What is a Salary Calculator?
A salary calculator is a free HR tool designed to automate complex salary calculations and ensure accuracy, transparency and as per updated legal laws.
You just need to input relevant data and press the submit button to calculate the salary. And it’s completely free! A salary calculator not only saves you from manual calculations but ensures the salary is accurate, error-free and statutory compliant.