Difference between Net pay, Gross pay and CTC.

Balajirao

Hi,

Please let me know the differerence between Net pay, Gross pay and CTC.

Regards,
Balaji

shreem

Hi,

Hope this will help you in understanding CTC, Gross Salary and Net Salary.

The term CTC, used to describe the remunerations offered to an employee on an annual basis, generally includes the basic salary, allowances, perquisites and statutory deductions like professional tax, company's contribution to provident fund, premium toward mediclaim and gratuity. But, sometimes, it might also include the annual performance bonus and interest-rate subsidy (if the firm gives out any), as a result of which, your monthly take-home salary may be way short of the annual CTC divided by 12.
Gross pay is your total pay for this pay period before deductions, reductions and taxes have been subtracted.
Net pay is your take-home pay after reductions, taxes and deduction have been subtracted from your gross pay. The net pay is the amount deposited into your account.

Shree

JOSEPHPATRAO

SHREE GIVEN THE RIGHT IDEA

basic
da
hra
cca
GROSS + LTA +MED+TEL+CAR+DRIVER+HOUSE+BONUS+INCENTIVES+MEDICLA IM+ETC = CTC
pf
esic
tax
loan
pt
NET

REGRADS
JOSEPH

Govil Nanda

Well Explained

Regards

Govil Nanda

vaibhav.tal

Joseph,
u exactly extracted the whole idea!!
Thanks...it will useful while explaining the idea to non-HR guys
Vaibhav

cgnanij

sampatel

Hi Balaji
Net pay is the pay u got in hands after deduction
Gross pay is the summation of Net pay & deduction
CTC means cost to customer (totaly expendeture given to employee it is generaly define for one year.

Quote:

Originally Posted by Balajirao

Hi,

Please let me know the differerence between Net pay, Gross pay and CTC.

Regards,
Balaji

JOSEPHPATRAO

THANK YOU VAIBHAV,

Balajirao

Hi,

Thanks for the valuable information.

Regards,
Balaji

deval.vyas

Very good explanation provided by Shree & Joseph

Regards
Deval