Should commission be calculated on revenue before or after GST?

On the taxable value, before tax, in almost every scheme — the tax was never the salon's money to share. Paying on the tax-inclusive total quietly inflates every commission by the GST rate, which on an 18% service is a fifth more than intended.

Should discounts come off before commission?

Yes, if the commission is meant to reflect what the salon actually earned. Paying on the pre-discount price means a heavily discounted bill can cost more in commission than it contributed, which is precisely the incentive you did not want to create.

Do product sales usually carry the same rate as services?

Rarely. Retail carries a purchase cost that a service does not, so a rate set for services applied unchanged to products can exceed the margin on the product entirely. Most salons run a separate, lower rate on retail for that reason.

Does a tip count towards commission?

Not normally, because it is already the staff member's money rather than the salon's. In Salvoro a tip is recorded on the bill but deliberately excluded from the total, the taxable value and revenue reporting, so anything derived from billed revenue leaves it out.

Salon commission calculator

Most commission disputes are not about the rate. They are about whether the top rate applies to everything, or only to the part above the threshold.

How is slab-based salon commission calculated?

Slab commission is normally meant to work marginally: each rate applies only to the portion of revenue inside its own band, the way income tax works. Paying the highest achieved rate on the entire amount instead produces a cliff at every threshold, where billing one rupee more can raise somebody's pay by thousands. Both are calculated below.

The scheme

Revenue billed this monthTaxable value of the lines credited to this person.Fixed salaryLeave at zero for a commission-only arrangement.

Slabs

Each rate applies from the revenue figure beside it. The first should normally start at zero.

From ₹Rate %

Enter revenue before GST. The tax collected on a bill was never the salon's money, so a scheme that pays commission on the tax-inclusive total quietly pays a fifth more than intended on an 18% service.

What it pays

10% on ₹0.00–₹50,000.00: ₹5,000.00
15% on ₹50,000.00–₹1,00,000.00: ₹7,500.00
20% above ₹1,00,000.00: ₹4,000.00
Commission (marginal): ₹16,500.00
Fixed salary: ₹18,000.00
Total pay this month: ₹34,500.00

Marginal slabs, and the cliff

A marginal scheme splits the revenue at each threshold and pays the rate belonging to each slice. Someone who billed ₹1,20,000 against slabs of 10% from zero, 15% from ₹50,000 and 20% from ₹1,00,000 earns 10% on the first ₹50,000, 15% on the next ₹50,000 and 20% on the last ₹20,000 — not 20% on all of it.

The whole-amount version is simpler to explain and produces a cliff at every threshold. At ₹99,999 the scheme pays 15% of everything; at ₹1,00,000 it pays 20% of everything, so one extra rupee of billing is worth ₹5,000 of pay. That is not a rounding difference, it is an incentive to hold a bill back to next month, and it is the usual reason a scheme has to be rewritten after a year.

Both figures are shown side by side so the difference is visible rather than argued about. Whichever you choose, write it down in the words the calculator uses — almost every commission dispute is a disagreement about the method, not the arithmetic.

Common questions

Should commission be calculated on revenue before or after GST?: On the taxable value, before tax, in almost every scheme — the tax was never the salon's money to share. Paying on the tax-inclusive total quietly inflates every commission by the GST rate, which on an 18% service is a fifth more than intended.
Should discounts come off before commission?: Yes, if the commission is meant to reflect what the salon actually earned. Paying on the pre-discount price means a heavily discounted bill can cost more in commission than it contributed, which is precisely the incentive you did not want to create.
Do product sales usually carry the same rate as services?: Rarely. Retail carries a purchase cost that a service does not, so a rate set for services applied unchanged to products can exceed the margin on the product entirely. Most salons run a separate, lower rate on retail for that reason.
Does a tip count towards commission?: Not normally, because it is already the staff member's money rather than the salon's. In Salvoro a tip is recorded on the bill but deliberately excluded from the total, the taxable value and revenue reporting, so anything derived from billed revenue leaves it out.

Worth knowing

This is arithmetic, not employment advice. Whether a scheme is lawful, and how it interacts with minimum wages or statutory dues, is a question for your own advisers.
It calculates one person for one period. It does not model a team, a shared pool, or commission split between two staff on a single bill.
Slabs here are monthly and revenue-based. Schemes built on service count, retail units or product-specific targets are not covered.
Nothing is deducted for tax, provident fund or any statutory withholding. The figure shown is gross.
Nothing you type is sent anywhere. The whole calculation runs in your browser.

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Salvoro credits every billed line to the person who performed it and works commission out from what was actually billed, not from what was booked.

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