ISO 9001: 2008, ISO 27001: 2013 & SSAE 16 CERTIFIED

DKM Online is a leading Payroll Company headquartered at New Delhi, India. Going by the review meetings with our front end team, we decided to do a post on basic terminologies of payroll processing, especially when it comes to jargons and acronyms related to Payroll, it might be global or domestic. Though these terms wouldn’t be new for many but others might not feel the same. Knowing this you can add up some terms to your list which might make your team trainings, communication and campaigns easy reference to payroll processing.

Starting with few, we have compiled few Global & Domestic Payroll Terms you must know. Feel free to add up more in the comments and we shall keep updating this list of Payroll terms.

CTC or Cost to Company:

It is the total cost to employ a person which includes mostly all the cost related to employment contract and compensations like provident fund, medical insurance etc. It is pretty much clear that the CTC form a part of the compensation structure but you do not get that as a part of in-hand salary. Which means that all these perks may increase your CTC but do not contribute to your net salary in-hand.


Perquisites form up the part of your compensation which includes amenities like the house allowance in the form of rent free unfurnished house or maybe furnished vehicle, reimbursement of gas, electricity & water, internet, newspaper, telephone bills, employee stock options and many more. This perquisite depends on the basis of employee’s rank or basic salary. It is interesting to note that the perquisites can’t be taxed directly as they are somewhat non cash components.

Pay Slip:

Pay slip is a final document of the salary which the employee has earned which includes the money earned, deduction of taxes, insurance and other compensations. It also comprises of gross income and all taxes which might also include deductions such as retirement plan or pension contribution or charitable contributions taken out of the gross amount which finalised your net income.

Form 16:

Form 16 is the provision for Tax Deduction at Source (TDS) wherein an employer deducts taxes for all salaried employees of the organization at source. In such cases, the company issues a Form 16 under section 203 of Income Tax Act (India) for Tax, which consists the details about the salary earned by the employee and how much tax is to be deducted. This tax is paid to government of India directly by the company and Form 16 is the proof of employee’s income and tax paid to the government.

Salaire brut / Gross salary:

It is the Gross salary or the compensation received by an employee before taxes, deductions, insurance premiums or other withholdings. Common term In French. Used in countries like Canada, France, Belgium and Luxembourg. Salaire net, or net salary, is defined as income after deductions.

We hope these terms would make you keen to look up more such jargons. DKM Online is a Payroll Processing Company with a presence is all metro cities of India, we have a bandwidth of global clients and we manage both Active Payroll and Cloud Payroll for them.