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Good day
Please can any one tell me what is the difference between gross salary and net salary and what do you mean by CTC. please explain me about this because i dont have knowledge about this. waiting for immediate response.
Deepa shree
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]Hello Deepa.....
Net salary is the take home salary of the emolyee while gross salary is the figure before making statutory or other deductions.
gross salary is basic+ HRA+ trnasport+ other allowance.
Gross salary minus pf contribution, ESI contribution, professional tax contribution etc. (as per applicability ) becomes net salary.
Goross salary = Salary before deductions
Net Salary = Salary after deductions
Hope its clear...
do revert back for further querries..
Net Salary = Gross – PF (Emp Cont) – ESI (Emp Cont) – PT CTC = Gross + PF (Emp’r Cont) – ESI (Emp’r Cont)
Dear Deepa Gross Salary means Salary before deduction Net Salary means after deductions ( PF, ESI, etc) with regards, Meenu
Dear Deepa,
Hope now your are clariffied about gross salary and net salary.
CTC means Cost To the Company. ie. All expenses incurred by the company for an employee is ctc.
Employer's contribution to PF,ESI, Bonus,Gratuity,Leave Salary are some of the major componets of CTC.
Hello Friends
Have a Good Day all
Please can you tell me the PF contribution(24%) , ESIC contribution (6.5%) , Gratuity (Basic*15/26) and Bonus all these are deducted from the CTC . Please Note specially % of PF and ESIC.
Jagdish Rawat

Hi Deepa,
Users above have explained the difference in a good way.
I wrote this extensive article talking about the CTC and net salary some time ago:
CTC - Defining Cost To Company And Take Home Salary.
I hope this would clear out your doubts. Let me know if you find it useful.
Hi Friends,
I understood the difference between Take home salary and CTC but just need to know that how do we show this deductions in the offer letter.
Can anyone help me with the format showing this calculation with all possinle deductions and benefits.
Dear Deepaji..
Here is your doubts get cleared:
Take example that as per your Appointment Order you are drawing Rs.10,000/- of salary per month. THIS IS YOUR GROSS SALARY

Dear Deepa, CTC(cost to the company)= gross+Employer PF+Employer ESI Gross salary= without deductions of employee PF,ESI & PT Net salary= with all the above deductions Regards, Nishat.
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