1. #1
    Unregistered

    Really confused about the salary components

    I have recently joined my first job in a software company after completing my graduation. I have heard about gross salary and CTC. I am really confused about the various salary components. Please can you explain me in details about CTC, gross salary and the various salary components.

  2. #2
    kaveri123 Array
    Join Date
    Feb 2013
    Posts
    25

    Re: Really confused about the salary components

    Hi Friend,
    Your confusion about these terms is quite justified as this is your first job . But don't worry, the following infomation might reduce your confusion to an extent.

    CTC is basically 'cost to company' and thus, includes all payments made to you by the company like basic pay, D.A., all allowances paid to you, perquisites and incentives provided, Emlpoyer and employees contribution to Provident Fund etc.

    Gross salary is also essentially the same. Salary components that form part of CTC and gross salary are- annual basic pay+ DA+ Any advance Salary+ Bonus + commisions+ Retirement benefits like employer and employees contribution to RPF + House Rent Allowance, Medical allowance, Travelling allowance and other allowances+ perks like car facility, medical facility, education facility, etc.

    Thanks. good luck


  3. #3
    Ashok Array
    Join Date
    Jul 2012
    Posts
    2,293

    Re: Really confused about the salary components

    Quote Originally Posted by Unregistered View Post
    I have recently joined my first job in a software company after completing my graduation. I have heard about gross salary and CTC. I am really confused about the various salary components. Please can you explain me in details about CTC, gross salary and the various salary components.
    Dear Aspirant,

    CTC means cost to company.It means it includes the total cost of the company for a employee in a year.The gross salary is the amount of total salary which is paid to the employee including amount of deductions.The net salary is the amount of money in terms of salary paid to a employee after deduction in EPF,insurance etc.

    The components of the salary are basic pay,dearness allowance,House rent allowance,medical allowance,transport allowance,city allowance,family planning allowance,fuel allowance & any other allowances admissible by the company.

    You can ask the manager HR/manager Accounts to give you salary slip which contains all the details pertaining to its components with amount.Generally it is given every month to all the employees.

    Hope your clear of the doubts.

    Thanks & good luck.

    Ashok..

  4. #4
    john215 Array
    Join Date
    Jan 2013
    Posts
    796

    Re: Really confused about the salary components

    Re: Really confused about the salary components
    Hi,

    SO MANY COMPONENTS IS THERE IN A SALARY

    # P.F
    # BONUS.
    # SPECIAL BENEFITS.
    # D.A.


    thanks

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