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
From India, Hyderabad
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
496Gross 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
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
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
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
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
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
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
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
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
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.
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
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
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
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
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.
People make the difference….ppt
Difference between Vision & Mission.doc