"Gross salary" refers to the total salary or earnings an employee receives before any taxes, deductions, contributions, or other adjustments are subtracted.
Annual gross salary is one's earnings before deductions over the span of a year. Annual gross salary is also called total gross salary.
Annual gross salary = Monthly gross salary x 12
Monthly gross salary is one's earnings before deductions every month. When multiplied by 12, it is the annual gross salary.
Monthly gross salary = Annual gross salary/12
For instance, if someone says they have an annual gross salary of ₹1,200,000 (in the Indian context), it implies that before any deductions like Provident Fund (PF), Professional Tax (PT), Income Tax, or any other possible deductions, they earn ₹1,200,000 in a year. This amount is then typically broken down into monthly payments, so in this example, the monthly gross salary would be ₹100,000 (₹1,200,000 divided by 12 months).
You can calculate gross salary by adding all the components of gross salary.
Gross Salary (India) = Basic Salary + HRA + Special Allowances + Bonuses + Other Allowances.
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