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HR Glossary

A comprehensive glossary built by PeopleStrong experts to help you navigate the world of work effortlessly.

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Basic Salary

What is Basic Salary? Basic Salary is the foundational, fixed component of an employee’s salary—it’s the core amount paid for work performed, before adding any allowances, bonuses, or making deductions for statutory contributions. It often forms 35-50% of the total salary (CTC) and is the reference point for calculating other salary elements like Provident Fund […]

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Cost to Company (CTC)

What is Cost to Company (CTC)? Cost to Company (CTC) is the total annual expense a company incurs to employ an individual. More than just the monthly salary, CTC bundles all monetary and non-monetary benefits provided—such as basic pay, allowances (HRA, medical, travel), statutory contributions (Provident Fund, ESI, gratuity), insurance, performance bonuses, reimbursements, and even […]

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Gross Salary Explained: Definition, Components, and Example

What is Gross Salary? Gross Salary is the total amount an employee earns before any deductions such as taxes, provident fund, or professional tax are subtracted. It represents the sum of the basic salary, allowances (like House Rent Allowance, Dearness Allowance, Conveyance Allowance, Medical Allowance), bonuses, overtime pay, and any performance-linked incentives. Unlike CTC, gross […]

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Net Salary / Take Home Pay

What is Net Salary / Take Home Pay? Net Salary—also known as Take Home Pay or In-Hand Salary—is the actual amount an employee receives each month after all statutory and optional deductions are subtracted from the gross salary. Unlike CTC or gross, net salary focuses on what’s credited to your bank account and available for […]

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Ready to turn your
HR into your
biggest competitive advantage?