Dear Seniors, what is the difference between gross salary, CTC, net salary and salary in hand? is there any fixed formula for calculating all parts of CTC, i.e., HRA, conveyance, Medical etc???
From India, Delhi
Greeting of the Day Neha Verma & All CiteHR managers
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Dear seniors, I, also confuse about it query. this query put up on citehr one month ago. but no one proper clarify. pl.contribute your valuable knowledge about it. Bashir
From India, Pune
Dear Neha,
CTC-Cost to Company-It includes every rupee company spends on emplyee-salary+allowances+statutory contributions etc everything
Gross salary-It is salary/month excluding annual benifits. Generally benefits like medical,LTA will be paid on annual basis.
Net salary=take home salary-It is the salary employee will get on monthly basis after all statutory deductions like pf,esi,pt&any other.
There is no specifice formula to calculate CTC. It is organization specific. But HRA should be min 30% of basic salary & conveyance should be min 10% of basic salary. Basic salary should be 50-60% of gross salary.
Srihari Koripalli,
Orient Cement.

From India, Pune
CTC- Something that people think you have Gross- Something you think you have Net- What you actually have ..................rgrds
From India, Mumbai
i agree with srihari reg definition of CTC,NET SALARY AND GROSS SALARY.
but i respectfully disagree with srihari reg 30% hra,10% COVEYENCE,BASIC SHOULD BE 50% TO 60% of gross. I would request him clarify under what act we are obligated.
Expecting your feedback.

From India, Vellore
i have a question if employee salary is 15100.00/m CTC then What exactly it means either employee has to pay employer & employee contribution by their own salary or he has to pay only employee contribution towards the PF I.E 12 % ONLY .
Thanks & Regards

Hi Mr. un-callable
The more typical your username is, the more humorous and to the point is your reply. I liked it. These are virtually the exact feelings that are linked with these terms. Actually CTC is your salary in the view of your neighbors and relatives , GROSS is for the satisfaction of your own ego and the CIH is for your family.
Amarjeet Singh, Ambala Cantt.

From India, Mumbai
Dear Neha,
CTC (Cost to Company) : It consists of all amount spends on an employee in any manner ( Salary, Bonus, Statutory contributions, service charges, transport, LTA, Medical, etc.,) will be arrived on annula basis and converted to monthly.
Gross salary: It is a portion of Monthly salary without considering the annual benefits of medical,LTA, Bonus, etc).
Net salary & take home salary: It is the salary, an employee will get on monthly basis after all statutory deductions like pf,esi,pt&any other.
The deductions may vary from industry to industry.

From India, Coimbatore
CTC means total cost management given for you (ex. Bonus, PF,ESI & other government related employers shares) indirect expenses are include in ctc.
Gross Salary means your total salary fixed for you without deductions (ex. Basic, HRA, Convey, LTA etc).
Net Salary means salary received cash in hand. after deductions of PF,ESI,Tax etc.
Suresh Babu S.P
98 94 18 04 76

From India, Madras

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