Whats the difference between gross salary and CTC?

Hi guys,

Can some one tell me the difference between gross salary and CTC?
Please help.

Regards,
Santosh Verma.
(9886609605).

Gross Salary is the salary in which annual benefits are not there & pf is included. once to take out pf it becomes net salry & CTC is the annual component which includes Gross + Annual Benefits.

so in Summary
CTC: - Annual Gross + Annual Benefits.
Gross: - PF + Net Salary( In Hand)

Rashmi

is there someone to help me out please/

thanks a lot rashmi.
can you please elaborate your answer. Are you talking about the annual bonus thats not included in the gross salary?
If yes what other components are ther in the CTC that are not there in the gross?

Please reply.

Regards,
Santosh Verma.
(9886609605)

Dear Santhosh,

Gross salary includes Basic+HRA+DA+employer contribution of PF+conveyance+other allowances

Deductions are Employee contribution(PF)+prof tax+ESI

Nett Salary(Take Home Salary) =Gross salary-Deductions

Rgs,
Lavanya

Hi,

Salary has been devided in totwo parts like Earnings & deduction

Gross Salary = earning + deductions
Remain is net salary

CTC is Annual cost to company which includes evrything you pay to employee like as component of salary, Bonus, LTA or any other ficility in Cash so there may be large diffrence between Gross slary & CTC.
Generaly sales & marketing people have more facilities & allowances than there salary.

Thnaks

Shilpa

HI,

To my knowledge, Gross salary includes heads such as basic, DA, special allowances, HRA, employers contribution to PF, ESI, Gratuity and other monthly emoluments. But CTC is Gross Salary + Bonus, Medical, LTA, and other annual emoluments paid annually.

Simply speaking,

Gross Salary= basic+ DA+ special allowances+ HRA+CCA+ other monthly emoluments

CTC = Gross Salary + Bonus + Medical + LTA+ other annual emoluments paid annually

Regards,

V.Nanda Kumar

hello

i may not knw the technicality of it but i will try to xplain in a layman's term

gross salary as everyone said is ur basic allowance+DA

CTC= cost to the company

for eg if a company declares tht ur salary is upto 3.5lac p.a n ctc is included it means tht even the cost of the chair n table the computer is included

the others r right ith thier view this is my knowledge
let me knw if i am wrong


regards

kinjal-pandit

Hi Santosh,

CTC means cost to company i.ae. what cost company is bearing or spending on you in terms of money. It includes all cash benefits and reimbursements i.e. fringe benefits etc. Now it is depend on Company what to include in CTC.
There can be Club membership etc can be included in CTC but this cant be part of your Gross Salary.

Therefore (in general) CTC= Gross Salary + Employer share of PF + Employer Share of Gratuity+ Other Benefits over & above Salary.

Now, Gross Salary, is What you get per month in your payslip before deducting your share for PF & TDS. After deducting your share of PF & TDS from Gross salary remains is Net Salary i.e. take home.
This Gross salary is divided in many allowances whatever they name. They can be LTA, HRA, DA, Basic, Lunch Allwn etc.
Gross Salary break up must have following to save maximum Income Tax
Basic, HRA,LTA, Transport Allwn, Medi. Reimb. Children Edu. Allwn

Therefore always ask for take home figure while joining new org.

Sachin Yadav
9869355472
EPFO
Mumbai

dear santosh

CTC (Cost to Company) itself defines the concept, ie. the company will not bear any expenses beyond that figure. It includes all the annual benefits & perqs. except reimbursement of expenses like conveyance on official travel & mobile. Some firms at the lower level include even these figures. The main difference is of Employers & Employee PF part. Gross salary (including all annual benefits) + Employers PF = CTC

Hope it answers ur query

Sandeep Sinha