By Team foundit
August 28, 2024
CTC, or Cost to Company, is the total amount a company spends on an employee. Learn what it includes to make better job decisions.
It includes your salary, bonuses, benefits, and even retirement contributions.
CTC covers expenses like office space, training, and taxes associated with your employment.
Your take-home pay, or in-hand salary, is lower than your CTC due to deductions.
CTC includes direct benefits (salary, bonuses) and indirect benefits (insurance, PF).
Performance bonuses are part of CTC but depend on meeting targets.
Your employer’s contribution to Provident Fund (PF) is included in CTC for long-term savings.
Gratuity is a benefit for employees who complete 5+ years. It’s part of CTC but paid when you leave.
Insurance premiums paid by your employer are part of CTC, reducing personal expenses.
Gross salary is your CTC minus PF, gratuity, and insurance. It’s the amount before tax deductions.