Question
What is the difference between CTC, gross salary and net salary?
Answer
Bottom line: CTC is the employer's total cost, gross is before deductions, and net is your in-hand pay.
1. CTC
Everything the employer spends on you, including its PF and gratuity cost, bonus and insurance.
2. Gross salary
Your earnings before deductions — basic, DA, HRA, allowances and variable pay.
3. Net salary
Gross minus employee PF, professional tax and TDS — the amount credited to your account.
Break down your pay with our Salary / CTC Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.