JoshiHR
Hello All, I would like to know the difference between CTC & Gross pay :?: , If any body knows it please clarify my doubt. Thanks, Joshi
From India, Hyderabad
Amitmhrm
496

Dear Joshi,
Gross pay is that annual cost which is fixed and been paid in terms of cash, whereas CTC is that cost which includes all the cost being paid by the company over an employee..
Can say that Gross Pay is that which we get in terms of cash in a particular year.. but CTC is that where company contribution and other allowance is also included.. which is not being paid us directly..
Regards,
Amit Seth.

From India, Ahmadabad
Ashok Kumar Mishra
3

I would add some examples.
The cost incurred by the employer towards Insurance is a cost to the company and not a part of gross Pay. The liability towards gratuity, pension and leave encashment also come under this category.
ashok

From India, Bhubaneswar
Sunita Sarkar
1

Dear friends,
I would also like to add something.
I think Gross is the amount which include the actual cash in hand and the annual cost which we get in terms of cash in a particular year like the bonus / LTA / Medical etc.
And CTC is where all the deduction and contributions like PF / ESI / gratuity and other allowances incurred by the employer towards the employee are included, which is not being paid us directly.
I agree with amit and ashok
If i am wrong do let me know please.
warm regards,
sunita sarkar :) :) :)

From India, Gurgaon
Vinove
33

Dear All,
As per my understanding, if we add employer's contribution towards PF, ESIC, Medical etc that is equal to CTC.
Gross pay is inclusive of Employee's contribution with respect to the above allowances etc, as mentioned above.
Regards
Bhavna
www.vinove.com

From India, Delhi
JoshiHR
Dear All,
First of all thanks for responding to my question in a quick span of time,
I would like to add some thing to your words that " Accordind to me Gross is the pay which is paid before deducting employers contribution to P.F (Excludes Employers Deduction)and CTC is the pay which includes the deduction of employee and as well as employers deduction in the salary of the employee of all deductions which are related to both the parties"
If I am wrong please correct me that where I went wrong.
Thanks,
Joshi

From India, Hyderabad
Swarna Jyothi Madanu
Hi Joshi, Diff b/w Gross nd CTC is, Gross is a part of CTC. In briefly, to calculate CTC(Cost to Copmany), Gross will plays a major role.

ashokkaundal
2

Dear Joshi,
AS all the friends have give, Gross Pay definiton is fine
In addition to the above the CTC(Cost To Company) also includes socts like , uniform expences(e.g. 2 sets of uniform per annum= Rs.1500/-pa), telephone/mobile expences borne by the company, Insurance expences if any( Personal accident policy or medi+calim policy perimium) etc.
Some companies even covers Leave Encashments(annual encashments as per policy) in CTC
In short whatever expences company is incussring on an employee is covered under CTC.
I hope this clarifies the situation.
With regards
Ashok

From India, Mumbai
Veena_J
11

Hello,
CTC and Gross is PA(per annum) basis.
CTC : Gross + Benefits ( PF, Insurance, Gratutity..)
Gross : Actuals, it doesn't incude benefits given by the company.
THe benefit list varies from company to company, but there are few in common like, PF, Insurance ( Mediclaim, Accidental, Onsite Insurance), Transport Allowances, Gratuity....)
hope it give you a clear picture.
regards,
Veena Jain

From India, Bangalore
JoshiHR
Hi All, Thanks for sharing your information, I would like to add something like, according to my knowledge the gratuity may not be considered as CTC. Please correct me if I am wrong. Thanks, Joshi
From India, Hyderabad
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