CTC Full Form in Salary | Full Form of CTC Salary

CTC Full Form - Cost To Company

 Cost to Company

Cost to Company

  • CTC stands for Cost To Company.
  • It's the annual salary package of an employee.
  • It indicates the entire expenses that a company/organization spends on an employee during a year.
  • Now days, most of the businesses offer their salary within the kind of CTC.
  • CTC isn't the particular salary of the employee. It also includes the facilities given to the employees in the service period. CTC = GROSS salary + incentives + other expenses
  • It clearly means CTC isn't only the salary, but it also includes many things like meal, medical facilities, telephone bill, house facilities, travel allowance etc.
  • Some company’s especially large investment banks also add office space rent within the CTC package.
  • Furthermore, if your company provides you accommodation, car, driver etc, the worth of those facilities is going to be included in your CTC. So, a number of the components of your CTC aren't translated into actual take-home cash and what you get in hand always remains but your CTC.

Let's take an example to know it well:

Component of salary (per annum) Amount
Basic salary 480,000
Dearness allowance 48,000
Conveyance allowance 12,000
Entertainment allowance 12,000
Overtime allowance 12,000
Medical reimbursements 15,000
House rent allowance 96,000
Gross salary 6,75,000

Benefits could also be change from company to company. Let's take an example of advantages for the above employee is:

Medical insurance 2000
Provident fund (12% of basic) 57,600 (12% of 4,80,000)
Laptop 50000
Total benefits 109600.

Cost to Company (CTC) = Gross Salary + Benefits
7,84,600 = 6,75,000 + 109600

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