DEAR ALL, i am about to know the difference between the ctc and the gross salary. i request u to send the clear explanations with respect to this doubt
From India, Madras
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From India, Madras
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As per my knowledge, CTC is the total Cost to the company which includes the employer cost of PF, ESI, and Gross salary. It does not include the employer contribution of PF and ESI.
i.e.,
CTC - Basic + HRA + Conveyance + DA + PF (Both Contribution) + ESI (Both Contribution) + Bonus
Gross salary - Basic + HRA + Conveyance + DA + PF (Employee Contribution) + ESI (Employee Contribution)
I would like seniors to comment on this...
From India, Guwahati
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5i.e.,
CTC - Basic + HRA + Conveyance + DA + PF (Both Contribution) + ESI (Both Contribution) + Bonus
Gross salary - Basic + HRA + Conveyance + DA + PF (Employee Contribution) + ESI (Employee Contribution)
I would like seniors to comment on this...
From India, Guwahati
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As per my knowledge and experience:
CTC = Basic + HRA + Conveyance + DA + Other Allowances + PF (Employer Side) + ESI (Employer Side)
Gross salary = Basic + HRA + Conveyance + DA + Other Allowances
Net Salary (Take-home pay) = Gross Salary - Canteen - PF (Employee) - ESI (Employee) - Welfare Fund - Others (Any other deductions as per company policies such as advances, mobile expenses, etc.)
Hope this information is helpful.
Hemant Agarwal
Email: hemant.dev@gmail.com
From India, Faridabad
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CTC = Basic + HRA + Conveyance + DA + Other Allowances + PF (Employer Side) + ESI (Employer Side)
Gross salary = Basic + HRA + Conveyance + DA + Other Allowances
Net Salary (Take-home pay) = Gross Salary - Canteen - PF (Employee) - ESI (Employee) - Welfare Fund - Others (Any other deductions as per company policies such as advances, mobile expenses, etc.)
Hope this information is helpful.
Hemant Agarwal
Email: hemant.dev@gmail.com
From India, Faridabad
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Hi,
Your CTC breakup is correct, but for the gross head. All the earnings by an employee are called gross, which means basic, DA, allowance, conveyance, and other benefits. These components come under the gross, other than deductions.
From India, Coimbatore
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Your CTC breakup is correct, but for the gross head. All the earnings by an employee are called gross, which means basic, DA, allowance, conveyance, and other benefits. These components come under the gross, other than deductions.
From India, Coimbatore
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Hi, I have gone through the operational definition of CTC and Gross salary given by many members.
CTC is the employer cost. This is the total cost in cash and kind both.
Gross salary employees benefits are paid to the employee on a monthly/annual basis.
As the word CTC stands (cost to the company), this includes both cash and kind given to the company. In cash, we include all benefits (monthly + annual + terminal benefits) and in kind, we include the insurance cost/medical policy/uniform cost or canteen subsidy + transport facility and many more..., which is not being directly paid to the employee directly, however, the company is incurring on a monthly/quarterly/annual basis. When we calculate the CTC, we consider all expenses. As the number of employees increases.
Gross salary is the benefit which the employee is getting on a monthly/annual basis before any deduction (employee contribution - PF/Tax/welfare fund/any other contribution by the employee). Once the employee contribution is deducted, then it becomes the net or take-home salary.
Hope this makes your understanding better.
SK
From India, Calcutta
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CTC is the employer cost. This is the total cost in cash and kind both.
Gross salary employees benefits are paid to the employee on a monthly/annual basis.
As the word CTC stands (cost to the company), this includes both cash and kind given to the company. In cash, we include all benefits (monthly + annual + terminal benefits) and in kind, we include the insurance cost/medical policy/uniform cost or canteen subsidy + transport facility and many more..., which is not being directly paid to the employee directly, however, the company is incurring on a monthly/quarterly/annual basis. When we calculate the CTC, we consider all expenses. As the number of employees increases.
Gross salary is the benefit which the employee is getting on a monthly/annual basis before any deduction (employee contribution - PF/Tax/welfare fund/any other contribution by the employee). Once the employee contribution is deducted, then it becomes the net or take-home salary.
Hope this makes your understanding better.
SK
From India, Calcutta
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Hi All,
Gross salary is the compensation received or receivable by an employee for his services provided. Gross means all payments made directly to an employee by an employer before any deductions. After deductions, we may call that the net salary.
CTC consists of payments made directly or indirectly to an employee or for the benefit of an employee by his employer. Even the insurance premium paid by an employer for the benefit of an employee would be included in the CTC.
Basically, the income heads are designed to comply with statutory requirements or such. So, we can't provide a formula with all these heads of income. Some companies may have no separate income heads, just for your information. This needs to be considered from a broader perspective.
Thanks,
Jay
From India, Alandur
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Gross salary is the compensation received or receivable by an employee for his services provided. Gross means all payments made directly to an employee by an employer before any deductions. After deductions, we may call that the net salary.
CTC consists of payments made directly or indirectly to an employee or for the benefit of an employee by his employer. Even the insurance premium paid by an employer for the benefit of an employee would be included in the CTC.
Basically, the income heads are designed to comply with statutory requirements or such. So, we can't provide a formula with all these heads of income. Some companies may have no separate income heads, just for your information. This needs to be considered from a broader perspective.
Thanks,
Jay
From India, Alandur
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It's simple.
CTC = your gross salary + whatever the company contributes or spends on you.
Gross = whatever your monthly pay is, except the company's contribution. This includes your basic salary, HRA, DA, conveyance (if provided for commuting), PF, and ESI (where PF and ESI only include your share, not the company's).
Okay?
Regards
From India, Nasik
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CTC = your gross salary + whatever the company contributes or spends on you.
Gross = whatever your monthly pay is, except the company's contribution. This includes your basic salary, HRA, DA, conveyance (if provided for commuting), PF, and ESI (where PF and ESI only include your share, not the company's).
Okay?
Regards
From India, Nasik
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GROSS SALARY&CTC FOR 15500.xls