1. #1
    Unregistered

    What is the major difference between net income and compensation?

    I am hearing about two different term in my company which is about net income and compensation but I really don't have any idea about what does it mean or the difference. So can you tell me what is the difference between net income and compensation? Details about it?

  2. #2
    san8 Array
    Join Date
    Sep 2012
    Posts
    118

    Re: What is the major difference between net income and compensation?

    Quote Originally Posted by Unregistered View Post
    I am hearing about two different term in my company which is about net income and compensation but I really don't have any idea about what does it mean or the difference. So can you tell me what is the difference between net income and compensation? Details about it?
    The two terms are very much different in meaning. Net income is nothing but the total revenue or earnings of the company. It can be determined by substracting the cost incurred while producing a product from the tota income.
    Where as compensation in actual meaning is the act of providing a substitude or a replacement to cover a deficiency. Compensation in financial terms could mean the act of funding a certain sector in the company from a different source because that sector is faced with a budget deficiet.
    Both the terms deal with the financial matters of the company and it determines the financial strength of the company.

  3. #3
    Chittaranjan Array
    Join Date
    Jul 2012
    Posts
    658

    Re: What is the major difference between net income and compensation?

    DEAR ASPIRANT-GROSS SALARY IS CONSIST WITH BASIC PAY + all compensatory items like da,cca,hra,tiffin allowance,conveyance allowance = gross salary now deduct your loan amount,subscription,premium,etc= Net Income.AND COMPENSATION MEANS ALL COMPENSATORY ITEMS HAVE TO PAY FOR ACCOMODATION/INFLATION ETC.OK

    THANK YOU,

  4. #4
    Expert Array
    Join Date
    Nov 2012
    Posts
    39

    Re: What is the major difference between net income and compensation?

    Hello Friend !!

    Do not worry, I will let you know and understand about these two terms here.

    Net Income :

    This is the Salary which you will get in Hands.

    This is based on your Working Days and Working Hours in a Month.

    This also includes your Extra Hours Payment, Travel Allowances(if any), etc,.

    So addition of all these makes your Net Income.

    Compensation :

    Compensation is not money.

    Compensation is nothing but which you will receive apart from Salary.

    This is the additional benefits to the employees to motivate them for stability.

    The Compensation Includes :

    Sodexo Passes,

    Shopping Coupons,

    Hospital Allowances,

    Insurance Policies,

    Tours or Trips, etc,.

    Hope you understand the difference !!

    Good Luck !!

  5. #5
    Vinod Ranga

    Re: What is the major difference between net income and compensation?

    Thank You Very Much

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