Hello All, I would like to know the difference between CTC & Gross pay :?: , If any body knows it please clarify my doubt. Thanks, Joshi
From India, Hyderabad
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From India, Hyderabad
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Dear Joshi,
Gross pay is the annual fixed cost that is paid in terms of cash, whereas CTC (Cost to Company) is the total cost that includes all the expenses borne by the company for an employee. We can say that Gross Pay is the amount received in cash in a particular year, while CTC encompasses company contributions and other allowances that are not directly paid to us.
Regards,
Amit Seth
From India, Ahmadabad
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508Gross pay is the annual fixed cost that is paid in terms of cash, whereas CTC (Cost to Company) is the total cost that includes all the expenses borne by the company for an employee. We can say that Gross Pay is the amount received in cash in a particular year, while CTC encompasses company contributions and other allowances that are not directly paid to us.
Regards,
Amit Seth
From India, Ahmadabad
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I would add some examples.
The cost incurred by the employer towards insurance is a cost to the company and not a part of gross pay. The liability towards gratuity, pension, and leave encashment also comes under this category.
Ashok
From India, Bhubaneswar
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The cost incurred by the employer towards insurance is a cost to the company and not a part of gross pay. The liability towards gratuity, pension, and leave encashment also comes under this category.
Ashok
From India, Bhubaneswar
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Dear friends,
I would also like to add something. I think Gross is the amount that includes the actual cash in hand and the annual costs that we receive in terms of cash in a particular year, such as bonus/LTA/Medical, etc. CTC is where all the deductions and contributions like PF/ESI/gratuity and other allowances incurred by the employer towards the employee are included, which are not being paid directly to us. I agree with Amit and Ashok. If I am wrong, please let me know.
Warm regards,
Sunita Sarkar :) :) :)
From India, Gurgaon
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I would also like to add something. I think Gross is the amount that includes the actual cash in hand and the annual costs that we receive in terms of cash in a particular year, such as bonus/LTA/Medical, etc. CTC is where all the deductions and contributions like PF/ESI/gratuity and other allowances incurred by the employer towards the employee are included, which are not being paid directly to us. I agree with Amit and Ashok. If I am wrong, please let me know.
Warm regards,
Sunita Sarkar :) :) :)
From India, Gurgaon
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Dear All,
As per my understanding, if we add the employer's contribution towards PF, ESIC, Medical, etc., that is equal to CTC. Gross pay is inclusive of the employee's contribution with respect to the above allowances, etc., as mentioned above.
Regards,
Bhavna
www.vinove.com
From India, Delhi
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As per my understanding, if we add the employer's contribution towards PF, ESIC, Medical, etc., that is equal to CTC. Gross pay is inclusive of the employee's contribution with respect to the above allowances, etc., as mentioned above.
Regards,
Bhavna
www.vinove.com
From India, Delhi
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Dear All,
First of all, thanks for responding to my question promptly. I would like to add something to your words: "According to me, Gross is the pay that is provided before deducting the employer's contribution to P.F (Excludes Employer's Deduction), and CTC is the pay that includes the deductions of both the employee and employer in the employee's salary, encompassing all deductions relevant to both parties."
If I am mistaken, please correct me on where I have erred.
Thanks,
Joshi
From India, Hyderabad
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First of all, thanks for responding to my question promptly. I would like to add something to your words: "According to me, Gross is the pay that is provided before deducting the employer's contribution to P.F (Excludes Employer's Deduction), and CTC is the pay that includes the deductions of both the employee and employer in the employee's salary, encompassing all deductions relevant to both parties."
If I am mistaken, please correct me on where I have erred.
Thanks,
Joshi
From India, Hyderabad
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Hi Joshi, Diff b/w Gross nd CTC is, Gross is a part of CTC. In briefly, to calculate CTC(Cost to Copmany), Gross will plays a major role.
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Dear Joshi,
As all the friends have given, the Gross Pay definition is fine. In addition to the above, the CTC (Cost To Company) also includes costs like uniform expenses (e.g. 2 sets of uniform per annum = Rs.1500/-pa), telephone/mobile expenses borne by the company, Insurance expenses if any (Personal accident policy or mediclaim policy premium), etc. Some companies even cover Leave Encashments (annual encashments as per policy) in CTC.
In short, whatever expenses the company is incurring on an employee are covered under CTC. I hope this clarifies the situation.
With regards,
Ashok
From India, Mumbai
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As all the friends have given, the Gross Pay definition is fine. In addition to the above, the CTC (Cost To Company) also includes costs like uniform expenses (e.g. 2 sets of uniform per annum = Rs.1500/-pa), telephone/mobile expenses borne by the company, Insurance expenses if any (Personal accident policy or mediclaim policy premium), etc. Some companies even cover Leave Encashments (annual encashments as per policy) in CTC.
In short, whatever expenses the company is incurring on an employee are covered under CTC. I hope this clarifies the situation.
With regards,
Ashok
From India, Mumbai
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Hello,
CTC and Gross are on a per annum (PA) basis.
CTC: Gross + Benefits (PF, Insurance, Gratuity...)
Gross: Actuals, it doesn't include benefits given by the company.
The benefit list varies from company to company, but there are a few common ones like PF, Insurance (Mediclaim, Accidental, Onsite Insurance), Transport Allowances, Gratuity...
I hope this gives you a clear picture.
Regards,
Veena Jain
From India, Bangalore
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CTC and Gross are on a per annum (PA) basis.
CTC: Gross + Benefits (PF, Insurance, Gratuity...)
Gross: Actuals, it doesn't include benefits given by the company.
The benefit list varies from company to company, but there are a few common ones like PF, Insurance (Mediclaim, Accidental, Onsite Insurance), Transport Allowances, Gratuity...
I hope this gives you a clear picture.
Regards,
Veena Jain
From India, Bangalore
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Hi All, Thanks for sharing your information, I would like to add something like, according to my knowledge the gratuity may not be considered as CTC. Please correct me if I am wrong. Thanks, Joshi
From India, Hyderabad
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From India, Hyderabad
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Hi All,
Greetings for the Day.
I have explained what the differences are between Gross salary and CTC.
CTC is the total cost of an employee to the company, whereas Gross salary is the earnings of an employee. Gross salary is not the Take-home salary or Net pay. We only receive the Net pay after mandatory deductions (PF, PT, IT, ESI, etc.) from the Gross salary. Therefore, we can say that mandatory deductions are included in both CTC and Gross salary. The above-mentioned CTC represents the total cost of an employee to the company, while Gross salary reflects the earnings of an employee, which is not the take-home salary.
Warm Regards,
Manirul Islam, Delhi
919958513778
From India, Delhi
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Greetings for the Day.
I have explained what the differences are between Gross salary and CTC.
CTC is the total cost of an employee to the company, whereas Gross salary is the earnings of an employee. Gross salary is not the Take-home salary or Net pay. We only receive the Net pay after mandatory deductions (PF, PT, IT, ESI, etc.) from the Gross salary. Therefore, we can say that mandatory deductions are included in both CTC and Gross salary. The above-mentioned CTC represents the total cost of an employee to the company, while Gross salary reflects the earnings of an employee, which is not the take-home salary.
Warm Regards,
Manirul Islam, Delhi
919958513778
From India, Delhi
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