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.
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
Gross salary and CTC are the terms with the same meaning. Both are the employees' basic salary added up with the allowances.
The elements of gross salary are :
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.
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.
Every salaried employee pays the tax for their gross salary depending on their annual package and the income tax norms.
