Gross salary refers to the total amount of salary an employee receives before any deductions or taxes are subtracted.
It includes all components of the salary package, such as basic salary, allowances, bonuses, and perks.
Gross salary is different from the Cost to Company (CTC), which includes additional costs incurred by the employer on behalf of the employee.
Components of gross salary include Basic Salary, House Rent Allowance (HRA), Special Allowance, Conveyance Allowance, Educational Allowance, Medical Allowance, and Leave Travel Allowance (LTA).
Understanding gross salary is crucial for effective financial management and tax planning.
It's important for employers and employees to understand the components of gross salary to ensure fair compensation and compliance with regulations.