basic salary gross salary and net salary cost to company Basic Salary definition Basic salary is the

amount paid to an employee before any extras are added or ta ken off, such as reductions because of salary sacrifice schemes or an increase due to ove rtime or a bonus. Allowances, such as internet for home-based workers or contributions to p hone usage, would also be added to the basic salary. This compares with gross salary and net salary. Companies also use the term cost to company, which refers to the total cost to t he company of employing someone. Net Salary is money actually credited to your bank account Gross salary is total salary on salary slip net Salary is roughly Gross-Retirals-Taxes Gross salary is what is agreed between you and your employer. Net salary is what you get after statutory and other deductions. To cite an example: Gross salary consists of: Basic Pay, Dearness Allowance, House rent Allowance, Conveyance Allowance, etc. Net salary consists of: All of the above LESS Income Tax deductible as per law, EPF contribution payable by the employee, deductions on account of subsidised lunch provided, advances of pay drawn, insta lments of Loans taken and repaid through salary. Now you go back to your Salary Slip and see whether the above details are helpfu l in finding out answers to your queries.

A typical salary slip contains following details: Earnings: Basic pay Dearness Allowance Graded pay/Special Pay HRA( House Rent Allowance) CCA( City Compensation allowance. Hill and Fuel Allowance. Conveyance Allowance. Over Time Allowance. Grand Total.

Deductions: EPF VPF(Voluntary Provident Fund subscription over and above EPF. I.T Professional Tax Deductions towards Company Quarters Deductions towards Loans/Advances. Any other: Total: Total Earnings will be called Gross Salary. Net Salary: Total earnings less deductions Now I think you know the answer for your second question from the above. http://www.citehr.com/453842-difference-between-salary-net-salary-gross-salary.h tml what is my salary ? basic? ctc etc ??