DEAR EVERYONE,
I WOULD LIKE TO CLARIFY THAT IS THERE ANY DIFFERENCE BETWEEN CTC & THE GROSS SALARY. GENERALLY THE THE TERMS ARE USED INTERCHANGEABLY, BUT IS THERE ANY ADDITION OR SUBTRACTION OF ANY COMPONENTS OF THE SALARY.
I WOULD LIKE TO CLARIFY THAT IS THERE ANY DIFFERENCE BETWEEN CTC & THE GROSS SALARY. GENERALLY THE THE TERMS ARE USED INTERCHANGEABLY, BUT IS THERE ANY ADDITION OR SUBTRACTION OF ANY COMPONENTS OF THE SALARY.
CTC is Cost to the Company...it includes everything that the company spends on its employee; including employer's contribution towards, PF, ESI and Gratuity. Remove...these compenents (Employer's Share) and you will get Gross Salary.
Regards
Sanjeev Sharma
(Blog: http://sanjeevhimachali.blogspot.com/)
From India, Mumbai
94Regards
Sanjeev Sharma
(Blog: http://sanjeevhimachali.blogspot.com/)
From India, Mumbai
Dear Poojaver12,
Gross salary is all the cash components that are paid to an employee without deductions like PF, professiobnal tax, income tax etc.,
CTC includes in addition to the gross salary salary expenses like employers contribution to income tax, gratuity, insurance premiums, superannuation contribution of employer, bonus, LTA etc.,
Companies calculate CTC in different ways and may include many more items in addition to those mentioned above. There is no standard list of salary heads and pay outs to be included in the CTC.
Regards,
Faizal
From India, Vadodara
Gross salary is all the cash components that are paid to an employee without deductions like PF, professiobnal tax, income tax etc.,
CTC includes in addition to the gross salary salary expenses like employers contribution to income tax, gratuity, insurance premiums, superannuation contribution of employer, bonus, LTA etc.,
Companies calculate CTC in different ways and may include many more items in addition to those mentioned above. There is no standard list of salary heads and pay outs to be included in the CTC.
Regards,
Faizal
From India, Vadodara
CTC is cost to the company i.e we have employers share and employees share while paying up a salary i.e PF , Gratuity , Bonus , ESI . If a company pays both of shares than it is Cost of Company . If only employers share is prepared than it is Gross Salary
Abhijeet
From India, Ahmadabad
Abhijeet
From India, Ahmadabad
Hai,
CTC-COST TO THE COMPANY, here emplyr's contribution of ESI , PF, GRATUITY, BONUS .. not only , but some companies have the CTC structure of adding all the big & small facilities provided to an employee.
As per observation it is found , some companies even add the empaler share of providing the subsidised canteen facility, transport etc...
where in , in reality an employee won't get any facility in subsidised manner.
Gross - where in only employee contribution of ESI,PF,PT will be deducted from the gross & Net takehome will be calculated.
Sinchana
From India, Bangalore
CTC-COST TO THE COMPANY, here emplyr's contribution of ESI , PF, GRATUITY, BONUS .. not only , but some companies have the CTC structure of adding all the big & small facilities provided to an employee.
As per observation it is found , some companies even add the empaler share of providing the subsidised canteen facility, transport etc...
where in , in reality an employee won't get any facility in subsidised manner.
Gross - where in only employee contribution of ESI,PF,PT will be deducted from the gross & Net takehome will be calculated.
Sinchana
From India, Bangalore
hi,
Gross salary : Basic + DA + CCA + HRA + Convayance + Medical Allowance + any other spcial allowance (inculue any other allowanc's payable by monthly.
CTC : Gross salary(above mentioned) + Contribution by Employer ( PF, ESI, Grauity,LIC ) + Telephone allowance, Car allowance, incentive , education allowance, Leave travel allowance , food allowance , Entertainment allowance any other payment toward the Employee from
the Hands of Employeer.
From the gross salary We have deduct only Pf 12% of Basic , ESI 1.75 on gross , Income tax (TDS) if its applicable .
Regards
Kugan Paramasivam.
From India
Gross salary : Basic + DA + CCA + HRA + Convayance + Medical Allowance + any other spcial allowance (inculue any other allowanc's payable by monthly.
CTC : Gross salary(above mentioned) + Contribution by Employer ( PF, ESI, Grauity,LIC ) + Telephone allowance, Car allowance, incentive , education allowance, Leave travel allowance , food allowance , Entertainment allowance any other payment toward the Employee from
the Hands of Employeer.
From the gross salary We have deduct only Pf 12% of Basic , ESI 1.75 on gross , Income tax (TDS) if its applicable .
Regards
Kugan Paramasivam.
From India
Dear Friend,
CTC is all those expenses either in cash or kind, incurred by the employer in keeping the person in service.
Gross Salary is the payment to the employee before deductions from employee's payment.
Gross salary is normally mentioned in the pay slip with the heading - Earnings. Also, deductions and Net Salary mentioned in the Pay slip.
Regards,
K.P.Misra
CTC is all those expenses either in cash or kind, incurred by the employer in keeping the person in service.
Gross Salary is the payment to the employee before deductions from employee's payment.
Gross salary is normally mentioned in the pay slip with the heading - Earnings. Also, deductions and Net Salary mentioned in the Pay slip.
Regards,
K.P.Misra
CTC or cost to company refers to total of predefined components of a salary package.It usually is pre-defined to include monthly salary components,and annual salary components which can be monetized.The aggregate of the CTCs of all employees for a year is the key figure that is kept a close watch on for performance/productivity measurements and for budget and control purposes.The more the number of components included into the CTC the more the control the decision makers can have on how to increase the returns from this investment in human capital or control the growth of the individual and aggregate CTC costs.
On the other hand Gross salary is a concept whereby only certain components of the salary are perceived as being allocable to individual employees and a number of other components are viewed as common to all employees.Here the scope for control is voluntarily kept in a narrower range.
In a Company which follows a CTC concept, LTC or LTA for example would usually be allowed as 1 month Basic per year or 1 CTC per year.In a Gross salary culture company LTC or LTA would be actual reimbursement of railway-fare for the members of the family of the employee.The former is closely defined and the latter is highly variable.
However rarely is any company ever able to include every component in CTC though attempts are made to get as many components included as possible.Companies give car benefit or have their own schools or have their own medical-clinics and doctors or they provide uniforms & safety equipment.Not always can these be allocated to each employee and then aggregated.
From India, Ahmadabad
On the other hand Gross salary is a concept whereby only certain components of the salary are perceived as being allocable to individual employees and a number of other components are viewed as common to all employees.Here the scope for control is voluntarily kept in a narrower range.
In a Company which follows a CTC concept, LTC or LTA for example would usually be allowed as 1 month Basic per year or 1 CTC per year.In a Gross salary culture company LTC or LTA would be actual reimbursement of railway-fare for the members of the family of the employee.The former is closely defined and the latter is highly variable.
However rarely is any company ever able to include every component in CTC though attempts are made to get as many components included as possible.Companies give car benefit or have their own schools or have their own medical-clinics and doctors or they provide uniforms & safety equipment.Not always can these be allocated to each employee and then aggregated.
From India, Ahmadabad
Poojaver12
CTC means what employer put expendature for Emplyoee' job duration that is PF, ESI, PT, INSURANCES FOR EMPLOYEES GRATITUE, EL, SL (WHO IS DROWNING ABOVE 10000/- FOR MONTH) Each and every thing who will pay by employer for employee that is total CTC Grass salary. those diductions diductble from employees Grass salary.
regards,
Nagendra
From India, Hyderabad
CTC means what employer put expendature for Emplyoee' job duration that is PF, ESI, PT, INSURANCES FOR EMPLOYEES GRATITUE, EL, SL (WHO IS DROWNING ABOVE 10000/- FOR MONTH) Each and every thing who will pay by employer for employee that is total CTC Grass salary. those diductions diductble from employees Grass salary.
regards,
Nagendra
From India, Hyderabad
What is the difference between CTC and Gross Salary? Well, this is the Question!!!
There are lot of stories in this thread, mostly unclear, majorly leading to confusion!. If there is any answer which is very precise, then it must be the very first answer by Sanjeev Sharma. Thanks a lot Sanjeev Sharma for your short and clear answer for this query.
-Vimal.
From India, Bangalore
There are lot of stories in this thread, mostly unclear, majorly leading to confusion!. If there is any answer which is very precise, then it must be the very first answer by Sanjeev Sharma. Thanks a lot Sanjeev Sharma for your short and clear answer for this query.
-Vimal.
From India, Bangalore
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GROSS SALARY&CTC FOR 15500.xls