Hi, Please let me know the differerence between Net pay, Gross pay and CTC. Regards, Balaji
From India, Madras
From India, Madras
Hi,
Hope this will help you in understanding CTC, Gross Salary and Net Salary.
The term CTC, used to describe the remunerations offered to an employee on an annual basis, generally includes the basic salary, allowances, perquisites and statutory deductions like professional tax, company's contribution to provident fund, premium toward mediclaim and gratuity. But, sometimes, it might also include the annual performance bonus and interest-rate subsidy (if the firm gives out any), as a result of which, your monthly take-home salary may be way short of the annual CTC divided by 12.
Gross pay is your total pay for this pay period before deductions, reductions and taxes have been subtracted.
Net pay is your take-home pay after reductions, taxes and deduction have been subtracted from your gross pay. The net pay is the amount deposited into your account.
Shree
From India, Hyderabad
19Hope this will help you in understanding CTC, Gross Salary and Net Salary.
The term CTC, used to describe the remunerations offered to an employee on an annual basis, generally includes the basic salary, allowances, perquisites and statutory deductions like professional tax, company's contribution to provident fund, premium toward mediclaim and gratuity. But, sometimes, it might also include the annual performance bonus and interest-rate subsidy (if the firm gives out any), as a result of which, your monthly take-home salary may be way short of the annual CTC divided by 12.
Gross pay is your total pay for this pay period before deductions, reductions and taxes have been subtracted.
Net pay is your take-home pay after reductions, taxes and deduction have been subtracted from your gross pay. The net pay is the amount deposited into your account.
Shree
From India, Hyderabad
SHREE GIVEN THE RIGHT IDEA basic da hra cca GROSS + LTA +MED+TEL+CAR+DRIVER+HOUSE+BONUS+INCENTIVES+MEDICLAIM+ETC = CTC pf esic tax loan pt NET REGRADS JOSEPH
From India, Mumbai
From India, Mumbai
Thanks Balaji........for asking such a good question
Thanks a lot to.......Shreem, Joseph & Sivas for explaining the query in such a good way...........& it proves that why more n more people join this site day by day........
Thanks a lot to all other members for appreciating others....
Hats off to u all guys................
Viral Shah :) :)
From India, Mumbai
Thanks a lot to.......Shreem, Joseph & Sivas for explaining the query in such a good way...........& it proves that why more n more people join this site day by day........
Thanks a lot to all other members for appreciating others....
Hats off to u all guys................
Viral Shah :) :)
From India, Mumbai
Dear Balaji,
Please find the differnce between Net Pay, Gross Pay and CTC as below
CTC : It is a cost to company i.e. per annum package offered to an employee to perform desiered roles and responsibilities which includes all the monetory benefits applicable to an employee during the year other than Incentive, Bonus, Appriciation Bonus, Relocation allowance, etc...
Gross Pay: This is the payemnt payable to an employee against the actual day he has worked (as per leave policy) i.e. gross salary is the earned pay of an employee.
Net Pay: the salary which actually gets transferred in emplyees account after all the deuctions like , PT, TDS, Advance if taken any, or any damage recovery etc....
I hope its up to the mark and simple to understand.
Regards,
Mona
From India, Mumbai
Please find the differnce between Net Pay, Gross Pay and CTC as below
CTC : It is a cost to company i.e. per annum package offered to an employee to perform desiered roles and responsibilities which includes all the monetory benefits applicable to an employee during the year other than Incentive, Bonus, Appriciation Bonus, Relocation allowance, etc...
Gross Pay: This is the payemnt payable to an employee against the actual day he has worked (as per leave policy) i.e. gross salary is the earned pay of an employee.
Net Pay: the salary which actually gets transferred in emplyees account after all the deuctions like , PT, TDS, Advance if taken any, or any damage recovery etc....
I hope its up to the mark and simple to understand.
Regards,
Mona
From India, Mumbai
Dear Sivas,
Please avoid showing the employer's contribution (that also including administrative charges) to EPF and ESI to form Gross salary because an employer is not supposed to deduct his own share of such contribution from the salary of an employee. If contribution payable by an employer is shown in the pay slip as CTC (of course, it is a part of CTC) it will be intrepreted as deducting the employer's share from the salary payable to employee.
Regards,
Madhu.T.K
From India, Kannur
Please avoid showing the employer's contribution (that also including administrative charges) to EPF and ESI to form Gross salary because an employer is not supposed to deduct his own share of such contribution from the salary of an employee. If contribution payable by an employer is shown in the pay slip as CTC (of course, it is a part of CTC) it will be intrepreted as deducting the employer's share from the salary payable to employee.
Regards,
Madhu.T.K
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Latest gujarat 6 pay modified.xls
VARIABLE PAY.doc