How to calculate salary
From gross to take-home: allowances, tax and deductions explained with a worked example.
Content reviewed: September 2026
From gross to take-home
Your gross salary is basic salary plus all allowances. Your take-home (net) salary is what remains after income tax and other deductions.
Step 1 — Add up monthly gross
Gross monthly = basic + house rent allowance + medical allowance + transport allowance + other allowances.
Step 2 — Work out annual gross
Annual gross = (gross monthly × 12) + annual bonus.
Step 3 — Estimate tax and deductions
Income tax is estimated on the annual gross using the income-tax slabs in the Income Tax Calculator. For background, read how Bangladesh income tax works. Other deductions (such as provident fund contributions) are subtracted as well. Note that real payrolls apply specific exemption rules — for example house rent allowance exemption limits — that a simple estimate does not model.
Step 4 — Divide back to monthly
Net monthly = (annual gross − annual tax − other annual deductions) ÷ 12.
Worked example
Basic ৳30,000, house rent ৳12,000, medical ৳2,000, transport ৳1,500, other allowances ৳1,000 and an annual bonus of ৳20,000:
- Gross monthly ≈ ৳46,500
- Estimated annual tax ≈ ৳17,800
- Estimated take-home ≈ ৳45,683 / month
Try the Salary Calculator for your own figures.