Understanding Wages, Salary, Gross Salary, and CTC: Can You Help Clarify These Terms?

Definition Request

What is the definition of:

1. Wages
2. Salary
3. Gross Salary
4. CTC

Please help me.

Regards

Definitions of Key Employment Terms

1. **Wages** – This refers to the payment amount based on work, such as an hourly rate.

2. **Salary** – This means the payment amount is on a monthly basis, reflecting regular employment engagement.

3. **Gross Salary** – This is the salary amount without any deductions.

4. **CTC (Cost to Company)** – This represents the overall payment made to an employee, encompassing all costs to the company.

As per my understanding, wage is denoted for the workmen class where the quantum of work can be measured. Salary denotes the employees of the supervisor, manager, or above class. Gross salary means the total earnings for a period before deductions. CTC means the total cost (investment) made by the company for an employee for a period. For definitions, you need to refer to the acts.

Regards

As per my experience, here are some key definitions related to compensation:

Wages
- It is denoted to the worker class where the quantum of work can be measured.

Gross Salary
- Total earnings without deduction every month.

CTC
- Cost to the company.

Regards,
Vikrant Singh

Dear Sewal,

Understanding Wages and Related Terms

Wages have different meanings under various legislations such as the Payment of Wages Act, Minimum Wages Act, Bonus Act, etc. However, the rest of the information provided by Mr. Shaikh is on the correct theme. Wages refer to earnings payable to workmen who are hired on.

Regards,

Definitions can differ, unfortunately. However, CTC, as I know it, usually refers to Total Guaranteed Cost to Company—in other words, before incentives—whereas Total Remuneration will refer to CTC plus incentives. I have seen different usage of the terms, though, and it is critical to be sure the source you are using has the same definition as you do—or you could end up basing fixed pay on a market figure that includes both fixed and variable.

1. Wages - Wages paid to workers in a particular cadre are called wages.

2. Salary - Salary is paid to the officers' cadre.

3. Gross Salary - The total earnings are referred to as Gross Salary.

4. CTC - CTC (Cost to the Company) includes the Gross Salary plus other deductions that the employee receives from the employer, such as P.F., Medical Allowance, etc.

In my opinion, wages are given to a laborer whose work can be calculated by hours. Salary is based on the monthly cost of an employee for working in an organization. Gross salary means the salary before any deductions. CTC, newly adopted by companies, means the Cost to the Company.