Lesson eLearning

An employee’s basic salary is Rs. 45,000 per month. The company gives a dearness allowance (DA) of 8% of basic, a house rent allowance (HRA) of 15% of basic, and a performance bonus equal to 6% of his gross salary (basic + DA + HRA). What is his total monthly gross remuneration?

medium 2 marks Class 12 · Business Studies · Staffing
Answer
Rs. 58,671

The correct answer is Rs. 58,671 — Add bonus to gross: 55,350 + 3,321 = 58,671.

Step-by-step solution

  1. Calculate DA: 0.08 × 45,000 = 3,600.
  2. Calculate HRA: 0.15 × 45,000 = 6,750.
  3. Find gross before bonus: 45,000 + 3,600 + 6,750 = 55,350.
  4. Calculate bonus: 0.06 × 55,350 = 3,321.
  5. Add bonus to gross: 55,350 + 3,321 = 58,671.
Common mistake: Adding bonus before computing gross salary

Concept tested: Gross salary calculation with allowances

Published · How this solution was prepared and checked

← All Staffing questions