What is gross salary?

[riya]

I’m trying to understand payroll terms better and keep seeing the phrase "gross salary" mentioned in offer letters and payslips. From what I know, gross salary is the total amount an employee earns before any deductions like tax, PF, insurance, etc. But I'm not sure if it includes bonuses, allowances, or overtime. Can someone explain clearly what counts as gross salary and how it's calculated?

also read about gross wages

 

[niyati]

Gross salary refers to the sum of money that an individual is earning without the deduction of income such as taxes, PF, and insurance. It includes:

Basic pay

Permissions (HRA, travel, medical, etc.)

Bonuses or incentives

Gross salary therefore is the amount provided and not the amount taken home.

 

[smith]

Gross salary is the sum total which an employee receives without including deductions. It incorporates the fundamental salary along with other elements of allowances (HRA, travel allowance, medical allowance), bonuses, overtime and other amounts.

Gross salary is the total earnings without deductions and tax in simple terms.

Example:
In case the average monthly salary of an individual has:

Basic salary: ₹30,000

HRA: ₹10,000

Travel allowance: ₹2,000

Bonus: ₹3,000

Then the gross salary = 30,000 + 10,000 + 2,000 + 3,000 = ₹45,000

Gross salary does not mean net salary, this is the gross salary minus tax, PF, or insurance which is what employees receive as actual net salary.

 

[amara]

Gross salary involves the amount of money an employee earns before any deductions are made on them such as tax, provident fund, loan recovery or insurance. It takes into consideration the basic salary and all the other items that are included like HRA, travel allowance, medical allowance, bonuses, commissions and overtime. Gross salary is the entire earning potential that is depicted in the employment proposal or salary package. It can also be utilized in the calculation of taxes and payroll. The salary that is paid to the employee after the deductions is known as net or take-home salary. As an illustration, when one has a basic salary, plus allowances and incentives, the total of all these amounts is his gross salary.

 

[jainnorton]

The total amount an employee receives from their company before any required or optional deductions are made is known as their gross salary. This is more than your final take-home (net) salary and includes overtime, bonuses, allowances, and base pay.

 

[Ian]

Gross salary refers to the total amount of money you earn before deductions are made to it - this entails basic salary and all allowances, bonuses, incentives and overtime (excluding contributions made on your behalf by your employer).

 

[Sinvelen]

The amount of money an employee makes before any deductions for things like taxes, provident fund, loan recovery, or insurance is known as their gross salary. It accounts for the base pay as well as all extra components, such as overtime, commissions, bonuses, travel and medical benefits, and HRA. The total earning potential shown in the job offer or compensation package is known as the gross wage.