Difference between CTC and Gross Salary

unus_8 · #1 06-10-2008, 12:06 PM

Hi guys

Can u please help in answering me what is the difference
between Cost to company and Gross salary

why do we calculate CTC for new recruits or ask present CTC for
laterals openings and why not Gross salary?

regards
unus

s_shalu · #2 06-10-2008, 01:44 PM

Dear Unus,

CTC is everything whatever the company spends on you like gross salary incentive like meal vouchers etc+phone bill payment+Travel Allowance+Employer’s share towards P.F, ESI. CTC is the Annual cost of the employee inclusive of all costs being incurred on employee
Gross Salary is what your employer has committed to pay you on monthly basis against your services for the said month

imrathore · #3 07-10-2008, 10:41 AM

Hi thr,

pls lemme know if CTC includes the per unit (manpower) electricity cost, premise rent cost etc

rgds

neeraj

Ranjith kumar · #4 07-10-2008, 10:53 AM

HI Unus,

Good one you have asked, common let me explain:

Salary can be of three divisions/parts,

1. Gross Salary
2. Net salary
3. CTC (Cost to company)

CTC= Gross Salary + other benefits from employer side(Employer contribution PF + ESI + Bonus + perquisites etc).

Net salary = gross salary - (employee PF+ESI+necessary Deductions)

For any other clarifications please feel free to write to me.

Ranjith kumar · #5 07-10-2008, 10:59 AM

Quote:

Originally Posted by imrathore

Hi thr,

pls lemme know if CTC includes the per unit (manpower) electricity cost, premise rent cost etc

rgds

neeraj

Dear Imrathore,

CTC does not include electricity seperately, If you are working in site and company provides you accommodation then the accommodation(Rent for your house) charges will be included in CTC.

Cost To the Company means, only includes the things which are shown as benefits to employee other than his Gross salary. Electricity bill of the company is not his benefit right.

aimsaashray · #6 07-10-2008, 11:57 AM

Could you just clear it with an example.

panidepuravi · #7 07-10-2008, 04:01 PM

Very knowledge transferable content

mebhavyaradha · #8 07-10-2008, 04:20 PM

Dear Ranjith,

Can u Pls let me know what standard (20% or 30%)% of CTC equals to Basic. and howmuch % of Basic is HRA. Is there any particular standards or it as per co. rules?

Rgs,
Bhavya

shahanal12 · #9 07-10-2008, 05:30 PM

There are not set standards for Basic upon CTC.

Let me explain CTC, Gross Salary and Net Salary....

Net Salary = the salary you get in your bank a/c every month considering you have served the company for all working days (All the heads are covered like Basic, HRA, DA Other allowances etc.)
===Shown in the salary statement

Gross Salary = Net Salary + Deductions i.e. PT, PF, ESIC (Employee's contributiononly)
===Shown in the salary statement

CTC = Gross Salary + Company's contributions (PF, ESIC, Other benefits etc)
===Not necessarily shown anywhere in employee's records.

christella · #10 07-10-2008, 05:35 PM

Quote:

Originally Posted by shahanal12

There are not set standards for Basic upon CTC.

Let me explain CTC, Gross Salary and Net Salary....

Net Salary = the salary you get in your bank a/c every month considering you have served the company for all working days (All the heads are covered like Basic, HRA, DA Other allowances etc.)
===Shown in the salary statement

Gross Salary = Net Salary + Deductions i.e. PT, PF, ESIC (Employee's contributiononly)
===Shown in the salary statement

CTC = Gross Salary + Company's contributions (PF, ESIC, Other benefits etc)
===Not necessarily shown anywhere in employee's records.

Thanks for giving this information
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