Hi Seniors, Can you please explain the terms what actually they mean 1. Gross Salary 2. Net Salary 3. CTC Regards Narinder
From India, Madras
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3From India, Madras
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Payment = Gross Pay
Gross Pay - Deductions = Net Pay (Cash in Hand or Take Home)
Gross Pay (inclusive of all) + All employer contributions = CTC (means Cost to Company, your employer will spend a single amount on you other than CTC).
Eg: (Monthly)
15000 Gross Pay
- 200 PF
- 200 ESI
- 200 PT
= 14,400/- Net Pay
Now 15000 + employer PF contribution + employee ESI contribution = CTC
From India, Mumbai
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Gross Pay - Deductions = Net Pay (Cash in Hand or Take Home)
Gross Pay (inclusive of all) + All employer contributions = CTC (means Cost to Company, your employer will spend a single amount on you other than CTC).
Eg: (Monthly)
15000 Gross Pay
- 200 PF
- 200 ESI
- 200 PT
= 14,400/- Net Pay
Now 15000 + employer PF contribution + employee ESI contribution = CTC
From India, Mumbai
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Hi Narinder,
Gross salary is the total of all the payables due to you each month. This would include basic salary, HRA, Conveyance, Medical, and other allowances. If there are incentives or bonuses, they would also form part of the gross salary.
Net salary is the salary you would take home after all deductions. Such deductions would include PF, ESI, TDS, unpaid leave, loans and advances, and any other applicable deductions.
So, Net salary = gross salary - applicable deductions.
Hope this helps.
Regards,
Gaurang
From India, Ahmadabad
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Gross salary is the total of all the payables due to you each month. This would include basic salary, HRA, Conveyance, Medical, and other allowances. If there are incentives or bonuses, they would also form part of the gross salary.
Net salary is the salary you would take home after all deductions. Such deductions would include PF, ESI, TDS, unpaid leave, loans and advances, and any other applicable deductions.
So, Net salary = gross salary - applicable deductions.
Hope this helps.
Regards,
Gaurang
From India, Ahmadabad
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Hi Narinder,
Gross Pay is the Total Earnings shown on the left side of the Pay Slip. Net Pay is Gross Pay minus all statutory and other deductions shown on the right side of the Pay Slip. CTC includes all direct pay (Gross Pay & Other Direct Pay, e.g., Bonus) and Indirect Pay (Employer Contribution to PF, ESI, superannuation, medical insurance, etc.).
Regards, Prahalatha Rao
From India, Bangalore
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Gross Pay is the Total Earnings shown on the left side of the Pay Slip. Net Pay is Gross Pay minus all statutory and other deductions shown on the right side of the Pay Slip. CTC includes all direct pay (Gross Pay & Other Direct Pay, e.g., Bonus) and Indirect Pay (Employer Contribution to PF, ESI, superannuation, medical insurance, etc.).
Regards, Prahalatha Rao
From India, Bangalore
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CTC means Basic+HRA OR DA+ CONVEYANCE ALLOWANCE+LEAVE TRAVELLING ALLOWANCE+MEDICAL ALLOWANCE+SPECIAL ALLOWANCE+NEWSPAPER ALLOWANCE OR ALLOWANCES WHICH ARE GIVEN TO EMPLOYEES.
OTHER EXPENSES WHICH ARE BORNE BY THE EMPLOYER INCLUDE GRATUITY+LEAVE AMOUNT+ESI & PF CONTRIBUTIONS+ELECTRICITY & WATER & TRANSPORT CHARGES, AMONG OTHER EXPENSES RELATED TO THE EMPLOYEES.
From India, Chandigarh
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OTHER EXPENSES WHICH ARE BORNE BY THE EMPLOYER INCLUDE GRATUITY+LEAVE AMOUNT+ESI & PF CONTRIBUTIONS+ELECTRICITY & WATER & TRANSPORT CHARGES, AMONG OTHER EXPENSES RELATED TO THE EMPLOYEES.
From India, Chandigarh
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Dear Shah Gaurang,
The Gross Salary will mean your Basic pay + Dearness Allowances and all other allowances such as HRA, Children education, Conveyance etc.
The Net salary will mean your take-home pay. Gross Salary - Statutory deductions such as PF, ESI, Profession tax, Income tax deductions etc. & Non-Statutory deductions such as Canteen subsidy, transport subsidy etc.
The CTC, on the other hand, includes the following:
Gross Salary + Annual Bonus/Allowances such as Incentives, Statutory Bonus, Medical Insurance premium paid by the Employer, Superannuation amount paid by the employer, Canteen facility (expenses incurred per head for maintaining the canteen), cost of beverages such as tea and coffee for individuals, LTA, Medical reimbursements, Welfare such as Uniforms, Snacks provided, Leave facilities (EL + other non-statutory leave provided). In short, it will include the expenses that an employer incurred for a particular employee for employing that particular individual.
Trust the matter is clarified.
M.V. KANNAN
From India, Madras
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The Gross Salary will mean your Basic pay + Dearness Allowances and all other allowances such as HRA, Children education, Conveyance etc.
The Net salary will mean your take-home pay. Gross Salary - Statutory deductions such as PF, ESI, Profession tax, Income tax deductions etc. & Non-Statutory deductions such as Canteen subsidy, transport subsidy etc.
The CTC, on the other hand, includes the following:
Gross Salary + Annual Bonus/Allowances such as Incentives, Statutory Bonus, Medical Insurance premium paid by the Employer, Superannuation amount paid by the employer, Canteen facility (expenses incurred per head for maintaining the canteen), cost of beverages such as tea and coffee for individuals, LTA, Medical reimbursements, Welfare such as Uniforms, Snacks provided, Leave facilities (EL + other non-statutory leave provided). In short, it will include the expenses that an employer incurred for a particular employee for employing that particular individual.
Trust the matter is clarified.
M.V. KANNAN
From India, Madras
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Hello Sir/Madam, In My company Manager said this month onwards Your salary 15000/ Inclusive of ESI & PF..Rs. But actually what my Doubt is....What would be my take home... And how much may my HRA.
From India, Madras
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From India, Madras
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Dear Suresh,
Your take-home salary will be Rs.15,000 - inclusive of PF, ESI, PT, and other deductions. Your HRA will be around 40% of your Basic Salary, or 50% if you reside in metros. The take-home salary varies from company to company based on the specific nature of contributions and deductions from your salary.
From India, Mumbai
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Your take-home salary will be Rs.15,000 - inclusive of PF, ESI, PT, and other deductions. Your HRA will be around 40% of your Basic Salary, or 50% if you reside in metros. The take-home salary varies from company to company based on the specific nature of contributions and deductions from your salary.
From India, Mumbai
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