This is an allowance given by your employer for domestic travel while you are on leave and is exempt from income tax as per the Income Tax Act 1961. It is a fully taxable component of your salary if you do not live in a rented house. This is the benefit given towards expenses related to rented accommodation. It varies between 35-50% of your total gross salary depending on your designation, experience, and the industry you work in.

It is the base amount of your salary package. However, gratuity can be paid before 5 years in case of the death of an employee or they become disabled due to an accident or illness. Eligibility to receive gratuity is dependent on the fact that you should have completed at least 5 years in an organisation. Gratuity is the monetary benefit given by your employer in return for your services. Gross salary includes your basic salary, house rent allowance (HRA), provident fund, leave travel allowance (LTA), medical allowance, Professional Tax etc.

Gross salary is your salary before any deductions are made from it. Before we get started, here are a few salary-related terms you need to know:ĬTC (Cost to Company) is your total salary package that includes all benefits spent on you by the company without any tax deductions.

The salary amount is usually mentioned in your offer letter or you can find it in your payslip as well.ĭo you find your salary slip confusing? Allow us to break it down for you. Salary is the fixed amount of money every professional employee gets for their work at the end of each month (don’t you eagerly look forward to this day each month?).

Cash salary slip format in excel