Gross Salary

Posted in Human Resource Terms, Total Reads: 768

Definition: Gross Salary

Gross Salary is the sum total of all the components of your remuneration/salary package. Gross salary is basically the salary which is without any deductions like income tax, PF, medial insurance etc. The gross salary is mentioned in the company's offer letter in the salary section which mainly enlist all the components of the pay package. The sum of all those individual components on an yearly or monthly basis is the gross salary.

The important components of salary may include:

• Basic

• HRA(House Rent Allowance)

• Leave Travel Allowance

• Conveyance Allowance

• Retirals

• Bonus

• Others like Medical allowance, Provident Fund (PF) etc

These components would determine the Gross Salary. Net Salary on the other hand is Gross Salary-Deductions like taxes, retirals etc therefore Gross Salary > Net Salary.

In some cases, some non-monetary components may also be included in the gross salary e.g. holiday trip etc.


ABC's Pay Package(monthly) may be

Basic : 1000$

TA/DA : 500$

Conveyance Allowance:100$

Retirals :300$


Medical Allowance:200$

So the Gross Salary in this case is : 2800$

But the Net Salary would be 2800 - 300$ - taxes.


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