Salary Calculation Confusion: Should It Be Based on CTC or Gross Salary?

Hello All,

Can anybody suggest to me if the salary for working days should be calculated based on the Cost to Company (CTC) or the Gross salary? I am confused about this matter. Is there any difference between CTC and Gross Salary?

Regards,
Suman

Hi Suman,

Salary for working days is calculated based on the gross salary, as it includes the payment made in terms of cash. The difference between them is that CTC includes all other components as well, which are paid indirectly, not in terms of cash, but in terms of other benefits provided by the employer.

Regards,
Amit Seth.