Difference between CTC & Gross salary

Dear ALL!!

Please let me know the difference between CTC & Gross salary.

What heads comes under these two.

Warm Regards,

Fahim Khan

Hi Fahim,

The difference between them is that one is monthly salary whereas another is Annual Cost of the employee...
gross salary is a part of CTC.. which is been paid at the end of every paid..
Whereas CTC is that cost which company bears over an employee annually.

Hope now it will be clear with you..

Regards,

Amit Seth.

Hi Fahim,

Fins below the complete details regarding the CTC and gross salary-

The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.


Basic
HRA
TA
Other Allowance
MobileReimbursement / Month
Gross Per Month = Sum of all the above.
GrossPer Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESIContribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximumceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy

EX-Gratia/Bonus = A fixed amount asBonus

Annual Fixed GrossCost= Gross/Annum+ Ex-gratia

Annual Total Cost = AFGC + PF+ESIC

Annual total cost is also called as CTC.

Hope now it will be very much clear to you,
if you have any query feel free to ask.

Regards,

Amit Seth.

Dear Amit,

I have seen lot of reply from u on this community.

Once again u cleared my doubt.
One more thing tell me abt net salary.

Thanks for ur contribution, keep it up


Fahim Khan

Hi Fahim..

First of all you most welcome and then Thank u for giving such an appreciations.. Will definitely keep it up..
Net salary is the salary which you get in cash at the end of the month after all the deductions.. like PF, ESI, n other any.. It is also called as cash in hand...

Hope it has clear your queries..

Regards,

Amit Seth.

Dear all,

Apart from all the components AMit had mentioned, CTC includes Employer's contribution towards PF/ESI/Insurance (Medical and/or Accidental).

Pl note these contributions are not a part of deductions towards the gross saalry.

Gross salary includes employee's share of PF/ESI/Insurance(if any).

Hope, this helps.


BRs
Harsh

Dear Harsh,

Thanks to explain the things..
But the PF and ESI componenets are already been added there in the salary break up.. which i mentioned in the above post..
Annual Total Cost = AFGC + PF+ESIC

Annual total cost is also called as CTC.

Regards,

Amit Seth.

Dear Amit,

Can you explain the calculation of taxes on salary and other necessary deductions.
Appriciate your contribution.
Thanx
Shraddha

Dear Amit,

Can you explain the calculation of taxes on salary and other necessary deductions.
Appriciate your contribution.
Thanx
Shraddha

Dear Amit,

Can you explain the calculation of taxes on salary and other necessary deductions.
Appriciate your contribution.
Thanx
Shraddha