[ecis2016.org] Depending on many variables, your gross salary, take-home salary and cost to company (CTC) are all different.
Gross salary, cost to company and take-home salary, are not just different names for salaries. There is a lot of difference between these three, about which we would learn in this guide.
You are reading: What is gross salary and how is it different from CTC and take-home salary
CTC meaning
Cost to company (CTC) is the amount which a company will have to bear on an employee for a specific year. In other words, CTC indicates the cumulative amount a company spends on an employee in a year. Note that the company’s CTC will always be higher than your gross and take-home salaries as it has more components than gross salary or take-home salary.
Components of CTC
- Basic salary
- House rent allowance
- Dearness allowance
- Medical allowance
- Entertainment allowance
- Conveyance allowance
- Other allowances
- Allowance towards mobile, internet, utility bills
- Educational allowance
- Salary arrears
- Remuneration
- Overtime payment
- Performance-lined bonus
- Cash awards
- Gratuity
- Contributions towards Provident Fund (PF)
- Payments of professional tax
- Deductions as income tax
[ecis2016.org] All about City Compensatory Allowance or CCA
CTC calculator
Read also : Assam Orunodoi Scheme: All you need to know
CTC = Direct Benefits + Indirect Benefits + Savings Contributions
| Direct benefits | Indirect benefits | Savings |
| Basic wage | Food coupons | EPF |
| HTA | Loans rated at subsidised rates | Gratuity |
| LTA | Company accommodation | Superannuation benefits |
| Conveyance allowance | Office space rent | |
| Medical allowance | Company car | |
| DA | ||
| Mobile allowance | ||
| PLI | ||
| Special allowance |
Gross salary meaning
Your gross salary is the amount before any deductions are made from it. It includes all components of your salary, barring pension fund contributions like EPF, gratuity, etc.
[ecis2016.org] All about TDS on salary
Components of gross salary
- Basic salary
- House rent allowance
- Conveyance allowance
- Medical allowance
- Dearness allowance
- Special allowance
- Leave travel allowance
- Allowance towards mobile, internet, utility bills
- Educational allowance
- Salary arrears
- Remuneration
- Overtime payment
- Performance-lined bonus
- Cash awards
Also read: Salary slip format: Everything you need to know
Gross salary calculator
Read also : PAN card: Your complete guide to its uses and application process
Gross Salary = Basic Salary + HRA + other allowances
Take-home salary meaning
Your take-home salary or net salary is the amount that gets credited into your account, once tax is deducted and contributions towards savings like PF and gratuity are made. As a result, it is much lower than your CTC or gross salary.
Take-home salary calculator
Take-home salary = Gross Salary – Income Tax – Public Provident Fund – Professional Tax
Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org
Source: https://ecis2016.org
Category: Must Knows
