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Gross Salary

What is Gross Salary?

Gross salary refers to the total amount an employee earns before any deductions such as tax, PF, pension, etc., are made. It consists of elements like basic salary, DA, HRA, CCA, bonus, incentives, and so on. Typically, the gross salary is greater than the net salary.

How To Calculate Gross Salary?

Gross salary is the addition of the Basic salary, Allowances given to the employee, Bonus, and Reimbursements. Where in the allowances include Dearness allowance, House rent allowance, and Leave travel allowance.

Gross salary = Basic salary + Allowances (DA + HRA + LTA + others) + Bonus + Reimbursements

Frequently Asked Questions

What is the difference between ctc and gross salary?

Gross salary and CTC are the terms with the same meaning. Both are the employees' basic salary added up with the allowances.

What Are The Elements Of Gross Salary?

The elements of gross salary are :

  • Basic salary
  • Allowances (DA, HRA, LTA and others)
  • Bonus
  • Reimbursements

What is the difference between gross salary and take home salary?

Gross salary is the salary of an employee with all the statutory additions. Meanwhile, take home salary is the basic salary of the employee which is the salary after the statutory additions.

How is gross salary paid?

Gross salary can be paid bi-weekly or monthly as per the company standards. The total salary will be divided by the number of periods in the salary method that you opt for.

Is gross salary taxable?

Every salaried employee pays the tax for their gross salary depending on their annual package and the income tax norms.

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