I would like to explain it all in laymen’s language.
Employment means a kind of job work, where any person works for somebody where in return he / she get paid for it. The people who work for them are called ’employee’. The work can be of different ways as per below:
– Permanent Full Time (Remote / Work from Office / Hybrid)
– Permanent Part Time (Remote / Work from Office / Hybrid)
– Contractual (Remote / Work from Office / Hybrid)
The people / organisation who gives work to the employees, are called ‘Employers’. In return of their work submission employers pay money to the employees. Here the amount which are paid to the employees is called Salary / Wages / Remuneration. This sometimes in corporate world, called as CTC / Package too.
In India, generally salary is paid on monthly basis. Which companies pay on either completion of month or between 1- 10 days of the next month.
e.g. If a person has worked in Jun-2022 so he / she will get paid on last working day i.e. 30th Jun 2022 or from 1st July 2022 to 10th Jul 2022.
Here in general sense CTC / Package is used many times in corporate world. CTC means overall spending by the employer to the employee in form of directly seen situation.
We must have heard many times that a final year student is offered package of INR 12 Crore by Google, Facebook or such big MNCs. That means the package will be “INR 12 Crore Per Year” however there are many deductions under it and on hand salary differs than the annual package / CTC.
Full form of CTC is Cost to Company. CTC is equivalent to be considered as Gross Salary. But in general terms, Gross Salary terminology is used to address salary for monthly consideration. Gross salary means the salary without any deductions.
e.g. If person “A” says his / her Gross Salary is INR 20000 then this is the salary without any deductions.
If he/she says his “on hand / in hand” salary is INR 15000 then this means this is his/her salary after all deductions. Means this is the salary he is getting in his / her bank account.
Generally companies open a salary bank account for every new employees so that it’s easy for them to transfer salary quickly after getting it opened and also salary bank accounts are zero balance bank account so employees don’t need to maintain any balance in it and there is complete freedom in that part. So he/she can withdraw complete money from the bank too if he wants to do and there won’t be any low balance maintenance charges by the bank. There are many other good features bank offer to such corporate employees.
Wages are the word mostly used while we understand salary and remuneration in legal ways during Industrial Law. So if wages are mentioned somewhere it’s like we want to address – Salary or Remuneration.
Ideally there should be some written terms and conditions put by the employers to the employees which he/she needs to sign and agree upon it & after that only his / her employment starts as per the mutually agreed joining date.
There is Job Offer Letter and then there is Appointment Letter employers should issue to the employees. Which are well important documents for the employees to keep for his / her future career and employments.
Some organisation issues “Job Offer cum Appointment Letter” as a joint letter / document so that’s also fine and one should consider it.
Generally employer means a company / organisation / firm which employs employee however owner of the company is also addressed to be employer as & when required so one shouldn’t be confused on this. There is some written.
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