Words like Gross Salary, Net Salary, and CTC can feel like rocket science when all you want to know is: “Kitna paisa haath me aayega?”
In this post, I’ll explain what Gross Salary really means and clear your all doubts.
First Things First: What is Gross Salary?
Gross Salary is The total money your company promises to pay you, before cutting taxes or deductions.
It’s like the “maximum salary” written on your payslip — but not the amount you take home.
Lets assume you have been offered 50000 per month but after a month your bank account only show Rs 42000.
Why? Because the 50000 is your gross salary and from that your PF, TDS and other deductions are subtracted to give you your net Salary.
Gross Breakdown
Here is how a typical Gross Salary looks like.
So here your month gross is 50000 but your Net salary will less after deductions like
- Provident Fund (PF)
- Income Tax (TDS)
- Professional Tax
- Insurance (if any)
Decode of Salary Component
Here I have we decoded the Salary component for our better understanding.
Gross Salary vs Net Salary
This is one most common question people ask especially fresher, In a lay man language I can say the Gross Salary is like Pizza and Net Salary is slice which company give you after slice of PF,TDS,ESIC etc.
What’s Not Included in Gross Salary?
- Your Gross Salary does NOT include:
- Employer’s PF contribution
- Gratuity
- Insurance premium paid by company
- Reimbursements (like fuel or meal coupons)
CTC vs Gross Salary vs Net Salary
Many people are confuse in these three words, So CTC is the total cost which company offer your it includes Fixed Salary ,Retiral parts and benefits etc, but Gross is the Fix component which company will pay you every month and Net Salary is the amount which employee get after subtracting the PF ESIC,TDS and other deduction from the Gross, if you want to know about the Payslip and and their component then may visit my payslip post.
In short- CTC > Gross > Net
Let us assume one case of Mr Rahul, a fresher from Delhi, got his first job in an IT firm.
The HR told him:
Congratulations! Your CTC is ₹6 LPA (₹6 lakhs per annum).
Rahul was excited and expected ₹50,000 in his account every month.
But… he got only ₹41,500. 😳
Why? Because:
- Employer PF: ₹21,600/year
- Gratuity: ₹11,000/year
- Insurance: ₹5,000/year
- Taxes & PF (Employee): ₹72,000/year
So his Gross Salary was actually: ₹4.9 LPA
His Net Take-Home was: ₹41,500/month
👉 Moral of the story: Always ask for Gross Salary & Net Salary, not just CTC.
How to Calculate Gross Salary?
Gross Salary = Basic Salary + HRA + Special Allowance + Other Allowances + Bonus (if monthly)
Let’s do a sample calculation:
- Basic = ₹25,000
- HRA = ₹10,000
- Special Allowance = ₹8,000
- Bonus = ₹7,000
👉 Gross Salary = ₹50,000/month
Where to Find Gross Salary in Payslip?
Your monthly payslip will usually have three sections Earning Section, Deduction Section and Net Salary.
- Earnings Section – where Gross Salary is shown
- Deductions Section – where things like PF, tax are shown
- Net Salary – final figure you get in hand
Look for “Gross Earnings” or “Total Earnings” in your payslip.
Frequently Asked Questions (FAQs)
Q. Is PF included in Gross Salary?
✅ Employee’s share of PF is included in Gross.
❌ Employer’s share is not.
Q. Does Gross Salary include bonuses?
✅ Yes, if they are paid monthly or quarterly.
❌ No, if paid once a year (then it’s part of CTC).
Q. Can Gross Salary vary every month?
Yes, especially if:
- You get performance incentives
- You’re on variable pay
- You have unpaid leaves or recoveries
Tip During Interviews
When HR says:
“Your CTC will be ₹9.5 LPA…”
You say:
“Thank you! May I also know the monthly Gross Salary and in-hand?”
This shows you’re smart and financially aware.
About the Author
