Gross Salary is the total amount an individual earns before any tax deductions they incur. It is typically calculated annually but can also be calculated monthly or weekly. It acts as the initial point for various financial calculations like income tax, employee benefits, loan eligibility, etc. The formula to calculate gross salary is,
Gross Salary = Basic Salary + HRA + Employees PF (Provident Fund) + Perquisites + Special arrears + Special allowance + Bonus