ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual salary.

Detailed explanation-2: -For individuals, gross monthly income is the total amount of money received in a given month before any deductions, including taxes. The sum of your gross monthly income comprises financial earnings from all available sources, including but not limited to: Regular wages or salary. Overtime, bonuses or commissions.

Detailed explanation-3: -The employer makes regular payments to the employee for the work done. Such regular payment is termed as the salary. The employment contract specifies the wages, usually made each month. The components of the salary structure are: Basic Salary: The employee’s basic income is around 40%-50% of the total salary.

Detailed explanation-4: -Salary Income is the paycheque you get every month from your employer. An amount received from your employer in the form of bonus, allowance, perquisites, etc. is a part of your Salary Income only. Pension received by you after your retirement (not family pension) is also a part of the head Salary Income.

Detailed explanation-5: -Income refers to the remuneration a person gets from any source in the form of cash, dividends, shares, profits etc. Salary refers to the money/cash an employee receives from their employer in return for their services.