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Salary Calculation Formula:
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Commission-based salary is a compensation structure where employees receive a base salary plus a percentage of the sales they generate. This model is common in sales roles across Kerala's industries like real estate, automobiles, and retail.
The salary is calculated using the formula:
Where:
Base Salary: Fixed amount paid regardless of sales performance, typically ranging from ₹8,000 to ₹25,000 in Kerala depending on industry and experience.
Commission: Variable component calculated as percentage of sales. Rates vary from 1% to 15% based on product type and company policy.
TDS: Tax deducted at source as per Indian income tax regulations. Typically 5-10% of taxable amount depending on income slab.
Instructions: Enter your base salary in INR, total sales amount in INR, commission rate as percentage, and any TDS deduction. All values must be positive numbers.
Q1: What is the typical commission rate in Kerala?
A: Commission rates vary by industry - real estate (1-3%), automobiles (0.5-2%), retail (5-15%), and insurance (10-20%).
Q2: How is TDS calculated on commission income?
A: TDS is deducted at 5% under section 194H if commission exceeds ₹15,000 annually. Professional tax may also apply.
Q3: Are there minimum wage laws for commission-based jobs?
A: Yes, Kerala's minimum wage laws apply to base salary. The total compensation (base + commission) must meet or exceed minimum wage requirements.
Q4: When are commission payments typically made?
A: Commissions are usually paid monthly along with base salary, though some companies pay quarterly after sales are realized.
Q5: Can commission rates vary by product?
A: Yes, many companies have tiered commission structures with higher rates for high-margin or strategic products.