What All is Included in Gross Salary?
When we talk about gross salary, we most often mean the amount stated in our employment contract. However, your earnings in a particular month will likely not be identical to that basic negotiated amount due to various salary additions. Everything paid to you taxably constitutes your new total gross base.
Base (Contract)
This is the foundation. The amount you negotiated for your regular work during regular working hours. Regardless of bonuses, this is the minimum (provided you worked the full hours that month).
Difficult Working Conditions
Past Work
This is a salary addition for years of service and loyalty to the employer (or total service in certain branches). Most often it amounts to, say, 0.5% of the basic gross salary for each completed year of service.
Bonuses and Incentives
All taxable cash bonuses for results achieved, 13th salary (if legally applicable and taxable), and other rewards.
What is NOT Included in Gross Salary?
There are items that the employer pays that are not part of your gross salary. This means that taxes and pensions are not paid on them, and you receive them in full in the net amount on your account. These are so-called Tax-free receipts:
- Transport allowance (travel cost)
- Meal allowance
- Per diems for business trips (up to the tax-free limit)
- Vacation allowance (up to the limit)
- Christmas and Easter bonuses (up to the limit)
- Gift for a child
- Remote work/utility allowance