iam venkat now just i completed my mba-hr. plz explain gross salary and ctc and difference between gross and ctc, plz explain any body
From India, Vijayawada
From India, Vijayawada
Hi Venky
Gross is sum of basic, HRA, conveyance allowance, medical reimbursement, education allowance and DA.
CTC is cost to the company i.e. it includes gross and statutory deductions like PF, ESI, Bonus, PT.
For Ex. an employee is CTC is Rs.3,20,000/- (which includes gross and statutory deductions)
then his take home salary would be approx. Rs.24,000/- (after deducting statutory deductions)
Hope this will help you.
Regards
Sudha
From India, Bangalore
9Gross is sum of basic, HRA, conveyance allowance, medical reimbursement, education allowance and DA.
CTC is cost to the company i.e. it includes gross and statutory deductions like PF, ESI, Bonus, PT.
For Ex. an employee is CTC is Rs.3,20,000/- (which includes gross and statutory deductions)
then his take home salary would be approx. Rs.24,000/- (after deducting statutory deductions)
Hope this will help you.
Regards
Sudha
From India, Bangalore
Hi ,
Gross means the salary booked in book of account in the head salary and can be paid on salary slip or by cheque and the amount which will fall under tax, but the part which pay on allowances by way of putting boucher against production of bills that will come under CTC to know about the cost of the employees which help to evaluate costing, ROI etc , it includes all the amount whether it will allowance and otherwise:CTC is used by company itself not in legal term.
Regards
From India, Delhi
Gross means the salary booked in book of account in the head salary and can be paid on salary slip or by cheque and the amount which will fall under tax, but the part which pay on allowances by way of putting boucher against production of bills that will come under CTC to know about the cost of the employees which help to evaluate costing, ROI etc , it includes all the amount whether it will allowance and otherwise:CTC is used by company itself not in legal term.
Regards
From India, Delhi
Gross salary is the sum total of all earning which is booked in your account and ctc(cost to company) includes gross salary+statutory deduction(like epf/esic both share including administrative charges)+other privelages offered to you by the company.
regards,
sumit kumar saxena
From India, Ghaziabad
regards,
sumit kumar saxena
From India, Ghaziabad
Dear Venkat,
Let me explain to you with an exasmple....
Basic: 5000
HRA: 4500
CA: 2500
MA: 3000
Gross: Basic+HRA+CA+MA, 500+4500+2500+3000=15,000
CTC: Gross+ Employer's contribution of PF+ Employer's contribution of ESI( If ESI Applicable) + Gratuity+Superannuanation+ Any annual salary components like, Performance based variable pay+LTA
Net Salary: Gross- ( Employee's contribution of PF+Employee's contribution of ESI+PT)
Here in this case: 15,000- (600+263+175)=13962
Hope this answer your querry
Regards
Rajat
From India, Mumbai
Let me explain to you with an exasmple....
Basic: 5000
HRA: 4500
CA: 2500
MA: 3000
Gross: Basic+HRA+CA+MA, 500+4500+2500+3000=15,000
CTC: Gross+ Employer's contribution of PF+ Employer's contribution of ESI( If ESI Applicable) + Gratuity+Superannuanation+ Any annual salary components like, Performance based variable pay+LTA
Net Salary: Gross- ( Employee's contribution of PF+Employee's contribution of ESI+PT)
Here in this case: 15,000- (600+263+175)=13962
Hope this answer your querry
Regards
Rajat
From India, Mumbai
The calculations can vary from company to company. It would be wise to check with the HR dept of the offering company to understand what all are covered under CTC and what would be your monthly take home salary after deductions. Otherwise you could be in for a surprise when you accept a job based on CTC offered and the monthly net in hand is not what you expected. For eg. in our company ex-gratia or bonus and gratuity is added to CTC. Some companies which provide bachelor accomodation and conveyance add a notional amount for these facilities onto the CTC.
From India
From India
The bonus can be included in the CTC calculation if the bonus is fixed like 8.33% or 10 or 20 % as the case may be.
From India
From India
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GROSS SALARY&CTC FOR 15500.xls