Many of us know the meaning of these terms i.e. CTC (Cost-To-Company) , Gross and Net salary. But for some specially who just started doing job, these terms are new and they are puzzle with them. This article will surely help them in understanding these terms.
Gross Salary : It is the salary your organisation agree to pay you on monthly basis without any deduction. it includes following components:
1. Basic salary
2. HRA
3. Conveyance
4. Other allowance
Net Salary : It is your take home salary i.e. it is the actual amount you get after deduction from your Gross salary.
Net salary = Gross Salary - deduction (PF,ESI & Tax as applicable)
CTC (Cost-To-Company) : It is the total cost your organisation incurs in employing you.
CTC = Gross salary + Benefits ( Bonus, Medical allowance & Leave travel allowance etc)
I hope now you all are familiar with CTC, Gross & Net salary .
Gross Salary : It is the salary your organisation agree to pay you on monthly basis without any deduction. it includes following components:
1. Basic salary
2. HRA
3. Conveyance
4. Other allowance
Net Salary : It is your take home salary i.e. it is the actual amount you get after deduction from your Gross salary.
Net salary = Gross Salary - deduction (PF,ESI & Tax as applicable)
CTC (Cost-To-Company) : It is the total cost your organisation incurs in employing you.
CTC = Gross salary + Benefits ( Bonus, Medical allowance & Leave travel allowance etc)
I hope now you all are familiar with CTC, Gross & Net salary .
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