How the calculation works
From gross to net: employee CSG (1.5% on a basic salary up to Rs 50,000, 3% above) and employee NSF (1%, calculated between Rs 2,910 and Rs 29,710) are deducted from the gross salary.
From net to gross: promised Rs 13,000 "in hand"? The calculator finds the gross salary that gives exactly that net amount. That gross figure is the one that must appear in the contract and on the payslip.
The cost to the employer adds employer CSG (3%), employer NSF (2.5%) and PRGF (4.5%) to the gross salary. The MRA total combines the employee and employer shares and the PRGF: it is what you pay the MRA each month.
Special cases
- A household employee earning no more than Rs 3,000 a month across all employers pays no employee CSG; the calculator applies this to the amount entered.
- Overtime, unpaid absences and the end-of-year bonus change the month's gross pay: Lakazone builds them into the monthly payslip.
To understand each contribution, read the guide to CSG, NSF and PRGF; to check the part-time minimum wage, see the minimum wage guide.