Hi, Please let me know the differerence between Net pay, Gross pay and CTC. Regards, Balaji
From India, Madras
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From India, Madras
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Hi,
I hope this explanation helps you understand CTC, Gross Salary, and Net Salary. The term CTC is used to describe the remuneration offered to an employee on an annual basis. It generally includes the basic salary, allowances, perquisites, and statutory deductions like professional tax, the company's contribution to the provident fund, premiums toward mediclaim, and gratuity. Sometimes, it might also include the annual performance bonus and interest-rate subsidy, if the firm provides any. As a result, your monthly take-home salary may be significantly less than the annual CTC divided by 12.
Gross pay is your total pay for this pay period before deductions, reductions, and taxes are subtracted.
Net pay is your take-home pay after deductions, taxes, and deductions have been subtracted from your gross pay. The net pay is the amount deposited into your account.
Shree
From India, Hyderabad
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19I hope this explanation helps you understand CTC, Gross Salary, and Net Salary. The term CTC is used to describe the remuneration offered to an employee on an annual basis. It generally includes the basic salary, allowances, perquisites, and statutory deductions like professional tax, the company's contribution to the provident fund, premiums toward mediclaim, and gratuity. Sometimes, it might also include the annual performance bonus and interest-rate subsidy, if the firm provides any. As a result, your monthly take-home salary may be significantly less than the annual CTC divided by 12.
Gross pay is your total pay for this pay period before deductions, reductions, and taxes are subtracted.
Net pay is your take-home pay after deductions, taxes, and deductions have been subtracted from your gross pay. The net pay is the amount deposited into your account.
Shree
From India, Hyderabad
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SHREE GIVEN THE RIGHT IDEA basic da hra cca GROSS + LTA +MED+TEL+CAR+DRIVER+HOUSE+BONUS+INCENTIVES+MEDICLAIM+ETC = CTC pf esic tax loan pt NET REGRADS JOSEPH
From India, Mumbai
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From India, Mumbai
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Hi Balaji,
Net pay is the pay you receive in hand after deductions. Gross pay is the sum of net pay and deductions.
CTC stands for Cost to Company, which refers to the total expenditure given to an employee and is generally defined for a year.
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Net pay is the pay you receive in hand after deductions. Gross pay is the sum of net pay and deductions.
CTC stands for Cost to Company, which refers to the total expenditure given to an employee and is generally defined for a year.
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Dear all, Please find attached the salary format which I believe will give some details on Gross,CTC & Net pay... regards Sivas
From India, Madras
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From India, Madras
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Dear Balaji,
Please find the difference between Net Pay, Gross Pay, and CTC as below.
CTC: It is a cost to the company, i.e., the annual package offered to an employee to perform desired roles and responsibilities, which includes all the monetary benefits applicable to an employee during the year other than incentives, bonuses, appreciation bonuses, relocation allowances, etc.
Gross Pay: This is the payment payable to an employee for the actual days worked (as per the leave policy), i.e., gross salary is the earned pay of an employee.
Net Pay: The salary that actually gets transferred to the employee's account after all deductions like PT, TDS, advances if taken, or any damage recovery, etc.
I hope it's up to the mark and simple to understand.
Regards,
Mona
From India, Mumbai
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Please find the difference between Net Pay, Gross Pay, and CTC as below.
CTC: It is a cost to the company, i.e., the annual package offered to an employee to perform desired roles and responsibilities, which includes all the monetary benefits applicable to an employee during the year other than incentives, bonuses, appreciation bonuses, relocation allowances, etc.
Gross Pay: This is the payment payable to an employee for the actual days worked (as per the leave policy), i.e., gross salary is the earned pay of an employee.
Net Pay: The salary that actually gets transferred to the employee's account after all deductions like PT, TDS, advances if taken, or any damage recovery, etc.
I hope it's up to the mark and simple to understand.
Regards,
Mona
From India, Mumbai
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Dear Sivas,
Please avoid showing the employer's contribution (including administrative charges) to EPF and ESI as part of the Gross salary. An employer should not deduct their own share of such contributions from an employee's salary. If the employer's contribution is displayed in the payslip as part of the CTC (which it is), it may be misinterpreted as deducting the employer's share from the employee's payable salary.
Regards,
Madhu.T.K
From India, Kannur
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Please avoid showing the employer's contribution (including administrative charges) to EPF and ESI as part of the Gross salary. An employer should not deduct their own share of such contributions from an employee's salary. If the employer's contribution is displayed in the payslip as part of the CTC (which it is), it may be misinterpreted as deducting the employer's share from the employee's payable salary.
Regards,
Madhu.T.K
From India, Kannur
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