Which Element is not used in Payroll Calculation?

Goods and Service Tax (GST)

The correct answer is option 4- Goods and Service Tax (GST).

GST is a tax on goods and services, not on salaries. It is not part of payroll, it applies to business transactions, not employee compensation.

OTHER OPTIONS

• Dearness Allowance is a compensation for erosion in the purchasing power of wage earner due to price rise.  It is granted by the Government periodically as a percentage of (Basic Pay + Dearness Pay, if applicable).

• Provident Fund (PF) : It is a statutory deduction, as part of social security. It is decided by the Government under the Provident Fund Act and is computed as a percentage of (Basic Pay + Dearness Pay, if applicable).

• House Rent Allowance (HRA) : It is an amount paid to facilitate employee in acquiring on lease of residential accommodation.