### Method 1 – Utilizing PRODUCT Function to Calculate Gross Salary in Excel

You can use the **PRODUCT function** when salary is based on *Working Hours*. We made a dataset, which is the **Working Activity Sheet of Employees**. The dataset has **Name of the Employee, Designation, Working Hours**, and **Hourly Pay Rate **in USD. It is like this.

You need to write the formula in the **F5** cell like this.

`=PRODUCT(D5,E5)`

**D5** and **E5** refer to **Working Hours** and **Hourly Pay Rate of Jane**.

You need to press **ENTER**, and the output will be **2,250**.

You need to use the **Fill Handle** by dragging the mouse’s cursor downwards. Furthermore, you should hold the right bottom corner of the reference **F5** cell like this.

You’ll find all the** Gross Salaries** from cells **F6** to **F14**.

### Method 2 – Applying PRODUCT Function Considering Overtime

When employees do overtime you need to take this into consideration. The following picture has an additional column **F**. It is mainly the **Overtime Hours** of the employees. Calculate Gross Salary you need to use the **PRODUCT **function in a complex form. You should write the formula in the **G5 **cell like this.

`=PRODUCT(D5,E5)+PRODUCT(1.5,(PRODUCT(E5,F5)))`

**D5, E5** and** F5** refer to **Normal Working Hours, Hourly Pay Rate** & **Overtime hours of Jane**. **1.5** refers that the **Overtime Working Hours’** payment is **1.5** times of the **Normal Working Hours’** payment.

**Formula Breakdown:**

This formula has two parts. These two parts are added with the sign** “+”**.

**PRODUCT(E5,F5)** calculates the products of **E5** & **F5** cells.

This output is multiplied by **1.5** with another **PRODUCT** function. This part is **PRODUCT(1.5,(PRODUCT(E5,F5))**

The output of **PRODUCT(1.5,(PRODUCT(E5,F5))** is added to the output of **PRODUCT(D5,E5)** through the formula **PRODUCT(D5,E5)+PRODUCT(1.5,(PRODUCT(E5,F5)))**

Clicking **ENTER** you will find the output as **2,925**.

Use **Fill Handle **to find all the **Gross Salaries**.

### Method 3 – Using SUM Function to Calculate Gross Salary in Excel

You need a **SUM function** to calculate **Gross Salary.** You should do this when the salary is based on Basic Salary. We have made a dataset which is the **Salary Sheet Based on Basic Salary**. It includes **Name of Employee, Designation, Basic Salary, Conveyance, **House Rent & **Medical Allowance**. We have taken other payments as.

**Conveyance**as**5%**of**Basic Salary**.**House Rent**as**40%**of**Basic Salary**.**Medical Allowance**as**15%**of**Basic Salary**.

The dataset is like this.

You need to put the formula in cell **H5** like this.

`=SUM(D5:G5)`

Press **ENTER **to get the output in the **H5 **cell.

Use the **Fill Handle** to find all other **Gross Salaries. **Eventually, these outputs are from cells** H6** to **H14**.

The final **Gross Salary** sheet will be like this.

## Things to Remember

- When you need to calculate
**Gross Salary**which is dependent on**Basic Salary**, you should calculate**Conveyance, House Rent, Medical Allowance,**or any other allowance individually. Usually you can do this by simple arithmetic calculation. - You can take
**Overtime Payment**as any value other than**1.5**. It depends on the official regulations.

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