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Net to gross salary

  1. #1
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    Net to gross salary

    Hello, I am new to the group, would really appreciate if anyone can help! would like to get a correct excel formula to work out correct weekly gross salary from Net Salary. (NET TO GROSS)..

    TAX is 10% and NI is 11%

    Gross Pay 360
    Earning at Lower 118
    above threshold (360-118)= 242
    11% Employee NI (242 @11%) =26.62
    Free Pay 179.02
    Taxable Pay (360-179.02)=180.98
    Tax @10% 18.1
    NET PAY 315.28


    I have tried the algebra method, but it doesn’t take into account Free Pay for Tax and Earnings at lower or upper level.

    Algebra Method doesn’t give me the correct Gross Pay.

    (100%-21)*X=315.28
    79%/1=0.79
    315.28/0.79= 399.09 but this doesn’t equate to 360.00

    Thanks you

  2. #2
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    Re: Net to gross salary

    Your formula is:

    x = (Y-(axb)-(cxd))/(1-b-d)

    where x = gross pay
    y = net pay
    a = NI threshold
    b= NI rate
    c= Tax free threshold
    d = tax rate

    I've tried it out using a few different levels of gross pay and also by varying the rates and thresholds and it seems to work, so long as the gross pay is greater than the thresholds. If pay is lower than one £179.02, then it gets a bit more complicated.

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    Re: Net to gross salary

    Thank you so much for this, I am not the best using algebra, could you kindly advise me, for example which figures would I use for ab c&D

    x = (Y-(axb)-c(d))/(1-b-d)

    Thank you again x

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    Re: Net to gross salary

    a - 118
    b - 11% (best expressed as .11)
    c - 179.02
    d - 10% (or 0.1)

  5. #5
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    Re: Net to gross salary

    Hi, Sorry to be a pain, been trying your formula, it keeps on saying Formula you typed contains error.. could you kindly advise me what am I doing wrong?


    a - 118
    b - 11% (best expressed as .11)
    c - 179.02
    d - 10% (or 0.1)


    =315.28-(0.1298)-179.02(0.1))/0.8989

    Many Thanks x

  6. #6
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    Re: Net to gross salary

    You're missing a bracket end I think.
    Try:
    =(315.28-(0.1298)-179.02(0.1))/0.8989

    And the denominator (the last number) should come out as 0.79, not 0.8989
    Its 1 minus 0.1 minus 0.11

  7. #7
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    Re: Net to gross salary

    You're missing a bracket end I think.
    Try:
    =(315.28-(0.1298)-179.02(0.1))/0.8989

    And the denominator (the last number) should come out as 0.79, not 0.8989
    Its 1 minus 0.1 minus 0.11

  8. #8
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    Re: Net to gross salary

    Thank you so much it work ya..

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