iam venkat now just i completed my mba-hr. plz explain gross salary and ctc and difference between gross and ctc, plz explain any body
From India, Vijayawada
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From India, Vijayawada
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Hi Venky,
"Gross" is the sum of basic, HRA, conveyance allowance, medical reimbursement, education allowance, and DA. CTC refers to the cost to the company, which includes gross and statutory deductions like PF, ESI, Bonus, PT.
For example, if an employee's CTC is Rs. 3,20,000/- (which includes gross and statutory deductions), then their take-home salary would be approximately Rs. 24,000/- after deducting statutory deductions.
I hope this information is helpful to you.
Regards,
Sudha
From India, Bangalore
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9"Gross" is the sum of basic, HRA, conveyance allowance, medical reimbursement, education allowance, and DA. CTC refers to the cost to the company, which includes gross and statutory deductions like PF, ESI, Bonus, PT.
For example, if an employee's CTC is Rs. 3,20,000/- (which includes gross and statutory deductions), then their take-home salary would be approximately Rs. 24,000/- after deducting statutory deductions.
I hope this information is helpful to you.
Regards,
Sudha
From India, Bangalore
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Hi,
"Gross" means the salary booked in the book of accounts under the head of salary. It can be paid on a salary slip or by cheque, and the amount that falls under tax. The part that is paid as allowances by way of putting a voucher against the production of bills will come under CTC. This helps to determine the cost of the employees, which is essential for evaluating costing, ROI, etc. CTC includes all amounts, whether it is an allowance or otherwise. CTC is used by the company itself and not in legal terms.
Regards
From India, Delhi
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"Gross" means the salary booked in the book of accounts under the head of salary. It can be paid on a salary slip or by cheque, and the amount that falls under tax. The part that is paid as allowances by way of putting a voucher against the production of bills will come under CTC. This helps to determine the cost of the employees, which is essential for evaluating costing, ROI, etc. CTC includes all amounts, whether it is an allowance or otherwise. CTC is used by the company itself and not in legal terms.
Regards
From India, Delhi
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Gross salary is the sum total of all earnings that are recorded in your account, and CTC (Cost to Company) includes gross salary + statutory deductions (like EPF/ESIC, both shares including administrative charges) + other privileges offered to you by the company.
Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Dear Venkat,
Let me explain to you with an example...
Basic: 5000
HRA: 4500
CA: 2500
MA: 3000
Gross: Basic + HRA + CA + MA = 5000 + 4500 + 2500 + 3000 = 15000
CTC: Gross + Employer's contribution of PF + Employer's contribution of ESI (If ESI Applicable) + Gratuity + Superannuation + Any annual salary components like Performance-based variable pay + LTA
Net Salary: Gross - (Employee's contribution of PF + Employee's contribution of ESI + PT)
In this case: 15000 - (600 + 263 + 175) = 13962
Hope this answers your query.
Regards,
Rajat
From India, Mumbai
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Let me explain to you with an example...
Basic: 5000
HRA: 4500
CA: 2500
MA: 3000
Gross: Basic + HRA + CA + MA = 5000 + 4500 + 2500 + 3000 = 15000
CTC: Gross + Employer's contribution of PF + Employer's contribution of ESI (If ESI Applicable) + Gratuity + Superannuation + Any annual salary components like Performance-based variable pay + LTA
Net Salary: Gross - (Employee's contribution of PF + Employee's contribution of ESI + PT)
In this case: 15000 - (600 + 263 + 175) = 13962
Hope this answers your query.
Regards,
Rajat
From India, Mumbai
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The calculations can vary from company to company. It would be wise to check with the HR department of the offering company to understand what all is covered under CTC and what your monthly take-home salary would be after deductions. Otherwise, you could be in for a surprise when you accept a job based on the CTC offered, and the monthly net in hand is not what you expected.
For example, in our company, ex-gratia or bonus and gratuity are added to CTC. Some companies that provide bachelor accommodation and conveyance add a notional amount for these facilities to the CTC.
From India
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For example, in our company, ex-gratia or bonus and gratuity are added to CTC. Some companies that provide bachelor accommodation and conveyance add a notional amount for these facilities to the CTC.
From India
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The bonus can be included in the CTC calculation if the bonus is fixed like 8.33% or 10 or 20 % as the case may be.
From India
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From India
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GROSS SALARY&CTC FOR 15500.xls