An employee's basic salary is Rs. 40,000 per month. The company gives a dearness allowance (DA) of 10 % of basic, a house rent allowance (HRA) of 20 % of basic, and a performance bonus equal to 5 % of his gross salary (basic + DA + HRA). What is his total monthly gross remuneration?

Step-by-step solution

1. Calculate DA = 10% of 40000 = 0.10×40000 = 4000.
2. Calculate HRA = 20% of 40000 = 0.20×40000 = 8000.
3. Compute gross salary before bonus = basic + DA + HRA = 40000 + 4000 + 8000 = 52000.
4. Compute performance bonus = 5% of 52000 = 0.05×52000 = 2600.
5. Total gross remuneration = 52000 + 2600 = 54600.

Concept tested: Calculation of gross salary

Published 10 October 2026 · How this solution was prepared and checked