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What is Gross Salary?

LiveRec EditorialUpdated

Gross salary is the total pay an employee earns in a period before deductions such as employee PF, professional tax and TDS. It is usually lower than CTC, which also counts employer PF, gratuity and other employer costs. In-hand salary is gross salary minus deductions.

Example

CTC is Rs 12 lakh a year. After removing employer PF and gratuity, gross salary may be lower. After employee PF, professional tax and TDS, the in-hand amount is lower again.

See CTC, in-hand salary and payslip.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.