In our career to become a responsible individual the Gross Salary income towards our work is always determined to play a crucial role, and there are numerous individuals who timely change and accept day to day daily job roles as per their education along with skills.
It is always exciting to look at the first job Gross Salary, as that brings a start to your career growth, and this growth does change with the responsibility you take and will directly make a good impact on your salary earning, and as well, one who is changing an organization will always be seen at their total which determines their level and stage of performance.
Any individual who is paid for their service to the company which is referred as Cost to Company and the CTC is such a company does give to the employee as per yearly basic with determining their entire components inside, and it is also made to be clear that cost to Company is different from a total salary, which is not equal to take home salary.
What is Gross Salary
Gross Salary is the amount that is calculated by adding the entire allowance & benefits which is before the tax deduction, and it is a combination of Gratuity, employee provident fund, HRA, Dearness Allowance according to the structure of the pay which the company has designed based on employee working, and here are some basic components of the salary described below.
- Basic Salary
- Dearness Allowance ( If Applicable)
- House Rent Allowance
- Special Allowance
- Conveyance Allowance
- Medical Allowance
- Educational Allowance
- Leave & Travel Allowance
Components not in Total Salary
This is a list of components which doesn’t include in the Gross Salary and will not be marked in the term calculation, and these are extra pay which an employee gets based on their work for the company.
- Refreshment or Snacks Allowance
- Reimbursement Claimed from company
- Allowances for Mobile & Data Bills
Is Gross Salary Similar to Net Salary?
The Net Salary is the amount that an employee takes to their home and will be free from a tax deduction, and the amount which is before the tax deduction that includes tax along with gratuity is your total salary and one which you carry to your home after all deduction is termed as Net Salary.
Is Basic Salary and Gross Salary the Same?
The Salary which is termed with add only the basic components and not including any allowances into it, and the basic salary will be mostly half of the total salary which only does include the basic component that is original pay for the work done by an employee in the origination.
What is CTC is the Gross Salary?
The Cost to Company is the amount decided by the company while recruiting an employee which involves the elements such as House Rental allowance, Gratuity Provident Fund and other allowance including the medical or any such, and the CTC is termed as the salary package given to an employee which makes extra part of Gross Salary.