CTC Full Form in Salary | Full Form of CTC Salary
CTC Full Form - 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|
|House rent allowance||96,000|
Benefits could also be change from company to company. Let's take an example of advantages for the above employee is:
|Provident fund (12% of basic)||57,600 (12% of 4,80,000)|
Cost to Company (CTC) = Gross Salary + Benefits
7,84,600 = 6,75,000 + 109600