Dear Everyone,
I would like to clarify, is there any difference between CTC and the gross salary? Generally, the terms are used interchangeably, but is there any addition or subtraction of any components of the salary.
Thank you.
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I would like to clarify, is there any difference between CTC and the gross salary? Generally, the terms are used interchangeably, but is there any addition or subtraction of any components of the salary.
Thank you.
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CTC stands for Cost to the Company. It includes everything that the company spends on its employees, including the employer's contributions towards PF, ESI, and Gratuity. Remove these components (Employer's Share), and you will get the Gross Salary.
Regards,
Sanjeev Sharma
(Blog: http://sanjeevhimachali.blogspot.com/)
From India, Mumbai
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100Regards,
Sanjeev Sharma
(Blog: http://sanjeevhimachali.blogspot.com/)
From India, Mumbai
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Dear Poojaver12,
Gross salary is all the cash components that are paid to an employee without deductions like PF, professional tax, income tax, etc.
CTC includes, in addition to the gross salary, salary expenses like employers' contribution to income tax, gratuity, insurance premiums, superannuation contribution of the employer, bonus, LTA, etc.
Companies calculate CTC in different ways and may include many more items in addition to those mentioned above. There is no standard list of salary heads and payouts to be included in the CTC.
Regards,
Faizal
From India, Vadodara
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Gross salary is all the cash components that are paid to an employee without deductions like PF, professional tax, income tax, etc.
CTC includes, in addition to the gross salary, salary expenses like employers' contribution to income tax, gratuity, insurance premiums, superannuation contribution of the employer, bonus, LTA, etc.
Companies calculate CTC in different ways and may include many more items in addition to those mentioned above. There is no standard list of salary heads and payouts to be included in the CTC.
Regards,
Faizal
From India, Vadodara
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CTC stands for Cost to the Company, which includes both the employer's share and the employee's share when paying a salary, such as for PF, Gratuity, Bonus, and ESI. If a company pays for both shares, it is considered the Cost of Company. If only the employer's share is covered, then it is categorized as Gross Salary.
Abhijeet
From India, Ahmadabad
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Abhijeet
From India, Ahmadabad
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Hi,
CTC - Cost to the Company includes the employer's contribution of ESI, PF, Gratuity, Bonus, and sometimes other big and small facilities provided to an employee. Some companies structure their CTC by adding all these facilities.
Upon observation, it has been noted that some companies even include the employer's share of providing subsidized canteen facilities, transportation, etc., in the CTC. However, in reality, employees may not actually receive these facilities in a subsidized manner.
In the Gross CTC, only the employee's contributions to ESI, PF, and PT are deducted from the gross amount, and the net take-home pay is calculated accordingly.
Sinchana
From India, Bangalore
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CTC - Cost to the Company includes the employer's contribution of ESI, PF, Gratuity, Bonus, and sometimes other big and small facilities provided to an employee. Some companies structure their CTC by adding all these facilities.
Upon observation, it has been noted that some companies even include the employer's share of providing subsidized canteen facilities, transportation, etc., in the CTC. However, in reality, employees may not actually receive these facilities in a subsidized manner.
In the Gross CTC, only the employee's contributions to ESI, PF, and PT are deducted from the gross amount, and the net take-home pay is calculated accordingly.
Sinchana
From India, Bangalore
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Hi,
Gross salary: Basic + DA + CCA + HRA + Conveyance + Medical Allowance + any other special allowance (include any other allowances payable monthly).
CTC: Gross salary (as mentioned above) + Contribution by Employer (PF, ESI, Gratuity, LIC) + Telephone allowance, Car allowance, incentive, education allowance, Leave travel allowance, food allowance, Entertainment allowance, and any other payment to the Employee from the hands of the Employer.
From the gross salary, we deduct only PF at 12% of Basic, ESI at 1.75% of gross, and Income tax (TDS) if applicable.
Regards,
Kugan Paramasivam.
From India
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Gross salary: Basic + DA + CCA + HRA + Conveyance + Medical Allowance + any other special allowance (include any other allowances payable monthly).
CTC: Gross salary (as mentioned above) + Contribution by Employer (PF, ESI, Gratuity, LIC) + Telephone allowance, Car allowance, incentive, education allowance, Leave travel allowance, food allowance, Entertainment allowance, and any other payment to the Employee from the hands of the Employer.
From the gross salary, we deduct only PF at 12% of Basic, ESI at 1.75% of gross, and Income tax (TDS) if applicable.
Regards,
Kugan Paramasivam.
From India
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Dear Friend,
CTC refers to all expenses, either in cash or kind, incurred by the employer to keep the person in service.
Gross Salary is the payment made to the employee before deductions from the employee's payment. It is typically mentioned in the pay slip under the heading - Earnings. Deductions and Net Salary are also listed on the pay slip.
Regards,
K.P. Misra
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CTC refers to all expenses, either in cash or kind, incurred by the employer to keep the person in service.
Gross Salary is the payment made to the employee before deductions from the employee's payment. It is typically mentioned in the pay slip under the heading - Earnings. Deductions and Net Salary are also listed on the pay slip.
Regards,
K.P. Misra
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CTC or Cost to Company refers to the total of predefined components of a salary package. It usually is predefined to include monthly salary components, and annual salary components which can be monetized. The aggregate of the CTCs of all employees for a year is the key figure that is kept a close watch on for performance/productivity measurements and for budget and control purposes. The more the number of components included into the CTC, the more the control the decision-makers can have on how to increase the returns from this investment in human capital or control the growth of the individual and aggregate CTC costs.
On the other hand, Gross salary is a concept whereby only certain components of the salary are perceived as being allocable to individual employees and a number of other components are viewed as common to all employees. Here the scope for control is voluntarily kept in a narrower range.
In a company which follows a CTC concept, LTC or LTA, for example, would usually be allowed as 1 month Basic per year or 1 CTC per year. In a Gross salary culture company, LTC or LTA would be the actual reimbursement of railway fare for the members of the family of the employee. The former is closely defined, and the latter is highly variable.
However, rarely is any company ever able to include every component in CTC, though attempts are made to get as many components included as possible. Companies give car benefits or have their own schools or have their own medical clinics and doctors, or they provide uniforms & safety equipment. Not always can these be allocated to each employee and then aggregated.
From India, Ahmadabad
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On the other hand, Gross salary is a concept whereby only certain components of the salary are perceived as being allocable to individual employees and a number of other components are viewed as common to all employees. Here the scope for control is voluntarily kept in a narrower range.
In a company which follows a CTC concept, LTC or LTA, for example, would usually be allowed as 1 month Basic per year or 1 CTC per year. In a Gross salary culture company, LTC or LTA would be the actual reimbursement of railway fare for the members of the family of the employee. The former is closely defined, and the latter is highly variable.
However, rarely is any company ever able to include every component in CTC, though attempts are made to get as many components included as possible. Companies give car benefits or have their own schools or have their own medical clinics and doctors, or they provide uniforms & safety equipment. Not always can these be allocated to each employee and then aggregated.
From India, Ahmadabad
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CTC stands for Cost to Company, which refers to the expenses the employer incurs for an employee during their job duration. This includes contributions towards PF, ESI, PT, insurances, gratuity, EL, SL (for those earning above 10,000/- per month). The total CTC includes all the expenses that the employer pays for the employee, forming the gross salary. These deductions are subtracted from the employee's gross salary.
Regards,
Nagendra
From India, Hyderabad
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Regards,
Nagendra
From India, Hyderabad
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Difference Between CTC and Gross Salary
What is the difference between CTC and Gross Salary? Well, this is the question!
There are a lot of stories in this thread, mostly unclear and majorly leading to confusion! If there is any answer that is very precise, then it must be the very first answer by Sanjeev Sharma. Thanks a lot, Sanjeev Sharma, for your short and clear answer to this query.
Regards,
Vimal.
From India, Bangalore
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What is the difference between CTC and Gross Salary? Well, this is the question!
There are a lot of stories in this thread, mostly unclear and majorly leading to confusion! If there is any answer that is very precise, then it must be the very first answer by Sanjeev Sharma. Thanks a lot, Sanjeev Sharma, for your short and clear answer to this query.
Regards,
Vimal.
From India, Bangalore
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How to divide the salary (Basic, HRA, and other allowances)? Kindly provide the report, sir. Thank you. Gnanakumar
Salary Components in an Offer Letter
An offer letter typically contains Basic Salary, Company's PF contribution, HRA, and Conveyance. All those are added to get the CTC (Cost To Company). In the above scenario, the Company's PF contribution would be 12% of the basic salary, HRA would be 50% of the basic, and Conveyance would typically be Rs. 800/-. So, all those components added with the basic salary will give you the CTC.
Thanks.
Vimal.
From India, Bangalore
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Salary Components in an Offer Letter
An offer letter typically contains Basic Salary, Company's PF contribution, HRA, and Conveyance. All those are added to get the CTC (Cost To Company). In the above scenario, the Company's PF contribution would be 12% of the basic salary, HRA would be 50% of the basic, and Conveyance would typically be Rs. 800/-. So, all those components added with the basic salary will give you the CTC.
Thanks.
Vimal.
From India, Bangalore
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I am confused. Can anyone tell me among the items listed below which are benefits and which are not:
1. Leave Travel Assistance.
2. Bonus/Ex-gratia.
3. Gratuity.
4. House/Quarter Maintenance.
5. Electricity.
6. Gas.
From India
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1. Leave Travel Assistance.
2. Bonus/Ex-gratia.
3. Gratuity.
4. House/Quarter Maintenance.
5. Electricity.
6. Gas.
From India
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GROSS SALARY&CTC FOR 15500.xls