Whats the difference between gross salary and CTC?

CTC means total cost to the company on behalf of the resource, expressed and hidden. It includes besides the gross salary, the cost of all welfare amenities like transport, cafeteria facilities etc, bonus, incentives,cost of gift vouchers, gratuity etc.

Gross salary refers to the monthly total amount payable in respect of an employee including the employer contribution to PF.

Vincent[/b]

Dear Santosh,

Hope yr query will sort out by the answers given by many collegues.
I am also sharing my opinion below in a form of Salary Slip.

Earnings Deductions
BA - 100 PF - 12
DA - 50 ESI - 4
HRA - 30 ADV. - 0
Conv. - 20
SP.Al. - 20
---------------- -------------------
Total - 220 Total - 16
========= ===========

Net Pay : 204/- (Rs. Two Hundred four only)

The Rs.220/- Total earnings in a month is called "GROSS SALARY"
The Rs.204/- After deductions is called "NET SALARY"

Now CTC = Cost to Company

Rs. 220/- Gross Salary
Add Rs. 10/- Bonus
Add Rs. 10/- LTA
Add Rs. 10/- Medical
Add Rs. 00/- Any other else whatever company giving in form of cash either annually / half yearly / quarterly EXCEPT - Subsidies in canteen any Long term award or any gifts. It's depend on the policy of company.

It has been seems that some organisation include the cost of facilities or subsidies in CTC and some organisation not include the facilities / subsidies to count CTC. So it is depend on the Company to Company.

Hope, it will serve yr purpose

Regards
L.C.Pal

Hi,

Please find below


What is CTC ???

CTC (Cost To Company): It includes Employer contribution To PF (12%)

EXP: if CTC is Rs.8000

Employer Contribution To PF = 12% of CTC

i.e. 8000*12% = 360

What is Gross Salary???

CTC- Employer Contribution to PF

i.e. 8000-360 = 7640

Gross = 7640

What is Take Home Salary ???

Gross- employee contribution to PF - other deductions

Gross 7640 Employee contribution to PF (12%) 360
Other Deduction:
Mobile
Food
Cab


Warm Regards,
Maniksing

Hi Guys,

Thanks a lot for all those valuble contributions on the topic.
Thanks a lot to everyone. Am sure that's gonna help me .

Regards,
Santosh Verma.

Hi Guys,

thanks a lot for your feedback.
Am sure thats gonna help me with my concept of the subject. Thanks once again.

Regards,
Santosh Verma.

Gross salary is monthly earnings by the employee and deductions (PF, ESO, PT, loans, advances etc) will be deducted from the gross salary.

CTC is the Cost to the Company on an employee which includes gross salary and annual benefits


Vamsi.

Hi,

Gross Salary reflect in your payslip ( i.e) excuding deduction like that P.F.
Net Salary = Gross salary - P.F. deduction

CTC = Gross salary + other benefits (like incentive which is not refect in pay slip)

Baskaran v

hi all,

About CTC i think the it will be clear to you if explaned by the bifercations given in the Salary Payslip

Total Earnings Deductions
Basic 4000 PF 480
HRA 1000 PT 80
Allowances 1520
Medical Allo 500
LTA 500
Total Earnings 7520
Total Deductions 560
So Gross is 7520- Deductions560= 6960 Net ( Carry Home)
In this case the CTC to this person is 8000Per Month.

I think this should clear your doubt.

Regards
satya

Dear Mr. santosh verma,
Bangalore


Whats the difference between gross salary and CTC?

Most our friends are telling a lot, if you are not satisfied.


by simple


Gross Salary= Total(Basic+Special Allowances+ DA+CCA+HRA+ other monthly emoluments ( without Subsidies, Gifts))

CTC = Total(Gross Salary + Bonus + Medical Allowance + LTA+ other annual emoluments paid by company annually)



Thanks & regards,

g. amaran.
Cuddalore - Tamilnadu.

Daily Allowance given to sales and field staff for each working day...

these allowances can be included in CTC ???

urgent

------------ PRashant