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KuzhuHRMS Software

Payroll

Gross salary

Gross salary is the total pay earned in a period before any deductions, made up of basic, allowances and any variable pay.

Gross is what the salary structure adds up to for the month: basic, house rent allowance, special allowance, conveyance and any other earnings, plus overtime or incentives for the month. Employer contributions are not part of it.

Deductions such as PF, ESI, professional tax and income tax are taken from gross to arrive at net pay.

In Indian payroll

Several statutory thresholds are tested against gross or a defined subset of it: ESI coverage at ₹21,000 a month, bonus eligibility at ₹21,000, and professional tax slabs in most states.

What is Gross salary?

Gross salary is the total pay earned in a period before any deductions, made up of basic, allowances and any variable pay.

Why does Gross salary matter in Indian payroll?

Several statutory thresholds are tested against gross or a defined subset of it: ESI coverage at ₹21,000 a month, bonus eligibility at ₹21,000, and professional tax slabs in most states.

In Kuzhu

The Payroll module in Kuzhu is where Gross salary is handled, on the same employee record as everything else.