Gross salary is your total pay for a month or year before any deductions are taken out, but after the employer-side costs bundled into CTC are stripped away. It is the middle figure of the three: CTC is bigger, net salary is smaller.

What it includes

Gross salary is the sum of every earning component on your payslip:

• Basic salary
• HRA
• Special allowance and other fixed allowances
• Reimbursements paid through payroll, and any allowance for conveyance, telecom or books
• DA, where applicable

It does not include the employer’s PF contribution, the gratuity provision or insurance premiums, which sit in CTC above gross. It also excludes variable pay, which is paid separately when it falls due.

From gross to net

Deductions from gross give you take-home: your own PF, professional tax, TDS, ESI if applicable, and any recovery such as a salary advance. On a gross of Rs 84,000 a month, PF of Rs 3,600, professional tax of Rs 200 and TDS of Rs 6,000 would leave a net of about Rs 74,200.

Frequently asked questions

Is gross salary the same as CTC?

No. CTC adds the employer’s statutory contributions, gratuity provision, insurance and variable pay on top of gross.

Does gross salary include bonus?

Fixed monthly components, yes. Annual bonus and variable pay are usually shown separately and added to gross in the month they are paid.

Which figure do lenders use?

They look at both gross and net, but eligibility is usually driven by net monthly income after obligations.

See the full ladder from CTC to net with the CTC to In-Hand Salary Calculator, and the component split with the Salary Breakup Calculator.