WHAT IS GROSS SALARY
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Sunita Sarkar Started The Discussion:
HI ALL PLS ADVICE ME FOR A SIMPLE QUESTION 1. WHAT IS GROSS? 2. IS IT INCLUDING PF CONTRIBUTION OF EMPLOYEE OR EMPLOYEER? 3. OR BOTH?? AWAITING FOR RESPONSE. REGARDS, SUNITA SARKAR :P :P :P
Hi sunita

Gross Salary is the agreed/committed compensation your Organisation agrees to pay on a monthly(periodic) basis aginst your services for that period.

1.gross salary = basic+ HRA+ trnasport+ other allowance.

2.Gross salary includes pf contribution of employee only.

3. employer contribution towards PF does not form a part of gross salary
Hi Sunita,

The components of the salary break up may be as below, you can prepare it at the suitability of your own. HRA would be 40 or 50% of basic.

Basic
HRA 40 - 50% is exempted from Taxes, depends on class of city
CCA - 825/- is exempted from tax
Other Allowance
Mobile Reimbursement
Medical Reimbursement of 1250/month is exempted from tax
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling 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 as Bonus

Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia

Annual Total Cost = AFGC + PF+ESIC

Annual total cost is also called as CTC.

Apart from this Food coupons, Holiday package and Furnishing items are included in their CTC.

Hope it must helped you to clear your queries up to some extent.


Regards,

Amit Seth.
TOTAL EARNINGS OF PERSON IN A PARTICULAR MONTH IS GROSS SALARY IN OTHER WORDS WITHOUT DEDUCTING ANY AMOUNT FROM YOUR SALARY IS GROSS SALARY.

NET SALARY IS AFTER DEDUCTION STATUTORY AS WELL AS NON-STATUTORY DEDUCTION LIKE CANTEEN DEDUCTION, TRANSPORT CHARGES. ETC.,

K.V.Selvaraj
Coimbatore
The amount that your company promises on paper is GROSS And The amount that you eventually receive in your bank account is NET
Hello Sunita

Hope you are doing good.

This is an example of what we follow in our company.

Gross is not what you get in hand, and it includes following components:

Basic
+DA
+HRA
+Conveyance Allowance
+CCA
+Special Allowance
+LTA
+Medical reimbursement
+Employees Contribution to PF

Therefore, Bonus and and employers contribution to PF is not included in the Gross salary.

Following are the components which are deducted from Gross and then we arrive at salary in hand or Net salary.

Net Salary = Gross salary - Employee's contribution to PF - Late time - (any other required deduction like ESI, Medical etc.)

and then finally to arrive at CTC:
Gross Salary
+Bonus paid
+PF contribution of employer



I hope things are clear now....


Have a great weekend ahead
Cheers
Priyanka.
Hi Suneeta

Gross salary contains your earning part. From company to companty the elements get changed. it does not have fixed format.

Following are the sample of Gross Salary
1.Basic + DA
2. Conveyance
3. Educational Allowance
4. Medical Allowance
5. House Rent Allowance
6. Special allowance
7. Pertol Allowance
8. Lunch Allowance
Etc.

PF does not included in gross salary but it is consider in CTC (Cost to Company).

PF is not your monthly in hand earning , but it is benefit provided by employer to emplyee. At the time of leaving the company you can withdraw the PF. It is just like deposits.

Thanks & Regards
Amruta : :lol: :lol: :lol: :lol: :lol:
Thanx all for reply really helpfull for me. Thanks & Regards, sunita sarkar :lol: :lol: :lol:
Please advice, can monthly statutory bonus be added in gross salary? if monthly gross salary is less than the slab for PT deduction and after addition of statutory bonus it crosses the slab of PT. Is mandatory to deduct the PT?



 
 
 
 





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