What is the Gross Salary?

What:

Gross Salary is basically the total pay(fixed) that an employee receives before taxes and other types of deductions. On the other hand, the amount an employee takes home after all the deductions is called Net Salary.

Components of Gross Salary:

Basic, HRA, Medical Allowances, Convenience Allowances, Special Allowances, Other Allowances, etc.

Calculation Formulae:

Gross Salary = Basic + HRA + Total Allowances

 

Example: Let's following are the amounts Rohit is going to receive as the salary for the month of January 2022.

 

Basic                                = 15000

HRA                                 = 7500

Medical Allowances         = 1600

Convenience Allowances= 2100

Other allowances            = 4200

Gross Salary                  = 30,400 

Employer Provident Fund & ESI will be there in CTC, but will not be added to Gross Salary.

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