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Consolidated Salary & Gross Salary

Roshni Singhania
Ranch Hand

Joined: Mar 11, 2007
Posts: 78
Hello all,

I'm from Mumbai, India. Need some advice. I have received an offer from a CMM level company. As per the salary structure document I received, my monthly gross salary comes to around 30k. But one sentence in the appointment letter, which I received the next day confused me a little. Below is the statement -

"You will receive a consolidated salary of Rs. 10200/- (Rupees Ten Thousand Two Hundred Only) per month and a Special Allowance of Rs. 1200/- (Twelve Hundred Only) per month. (Please note your salary package may be restructured by adjusting “Special Allowance” without affecting the gross salary)."

As per their salary structure, "10200" is the "Basic", "1200" is the Special Allowance, as mentioned and there are some other components in the "Monthly" part, which all sum up to around 30000.

So this statement confused me. I'd also shown this snippet to couple of my senior managers, they also thought that this could be a typo or something and asked me to clear it with the HR of the new company. The HR didn't clearly answer my question about how much salary I'll be getting in hand per month. She just said that I was the first person to ask her a question like this and if this was the case then none would join their company.

So can anyone please help me understand

1) The difference between "Gross Salary" and "Consolidated Salary". 2) And is it okay to sign on offer letter with above statement?

I'd really appreciate it.

Thanks in advance.

Deepak Bala

Joined: Feb 24, 2006
Posts: 6661

She just said that I was the first person to ask her a question like this and if this was the case then none would join their company.

Is it a crime to clarify your compensation ?

Its hard to say what that component is without looking at the contract document. It is probably a performance allowance that depends on the performance of the company. Which is to say Fixed allowance X + performance allowance Y = Gross salary Z. If the company does not do well, the gross salary would, in the worst case scenario, equal X.

It may also be a variable allowance that allows you to split that allowance to various components like house rent / food coupons / Leave allowance etc.

Call the HR again and try asking the same question differently.

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Manish Hatwalne
Ranch Hand

Joined: Sep 22, 2001
Posts: 2578

The HR people must answer it properly. Please visit in person and try to get details or try asking on the phone. If it is a big company, chances are you will get what was promised to you.

Roshni Singhania
Ranch Hand

Joined: Mar 11, 2007
Posts: 78
Thanks Deepak and Manish for answering. I got it clarified from another HR of the same company, asked her what my take home would be per month. She told it'll be Gross - whatever deductions.. But I'm still not sure whether or not I should sign on the letter with that statement. I asked a few more people about that statement, they all said it's misleading. So now I've requested an acquaintance, who has an acquaintance in that company, to check if this is how all their offer letters are.. with "Basic" shown as Consolidated salary. Let's see what feedback I get.
subject: Consolidated Salary & Gross Salary
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