Understanding Gross Salary and Net Salary
My query is regarding Gross Salary and Net Salary. I am totally confused about this. According to me, Gross Salary is the monthly salary of an employee without any statutory deductions (PF, ESI, IT, PT, etc.), and Gross minus statutory deductions equals Net Salary. Whereas CTC is Gross Salary plus perks and other benefits given to an employee on an annual basis.
Please state whether I am correct or not. However, somebody told me CTC minus PF equals Gross, and Gross minus ESI equals Net.
Please clarify my doubts.
Thanks!
From India, Hyderabad
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My query is regarding Gross Salary and Net Salary. I am totally confused about this. According to me, Gross Salary is the monthly salary of an employee without any statutory deductions (PF, ESI, IT, PT, etc.), and Gross minus statutory deductions equals Net Salary. Whereas CTC is Gross Salary plus perks and other benefits given to an employee on an annual basis.
Please state whether I am correct or not. However, somebody told me CTC minus PF equals Gross, and Gross minus ESI equals Net.
Please clarify my doubts.
Thanks!
From India, Hyderabad
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Understanding CTC, Gross, and Net Salary
There are slight differences among CTC, Gross, and Net salary.
- (a) Net salary means what we take home.
- (b) Gross salary means take-home salary + statutory deductions like (PF, ESI, IT, etc.).
- (c) CTC means the sum of a + b and other annual benefits which will be given by the company.
Regards,
E. T. Rao
From India
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1There are slight differences among CTC, Gross, and Net salary.
- (a) Net salary means what we take home.
- (b) Gross salary means take-home salary + statutory deductions like (PF, ESI, IT, etc.).
- (c) CTC means the sum of a + b and other annual benefits which will be given by the company.
Regards,
E. T. Rao
From India
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