CTC Definition & Meaning | What is Cost to Company? | CTC Calculation | UBS

CTC (Cost to Company)

What is CTC (Cost to Company)?

CTC stands for Cost to Company. So, basically, it is the total cost a company would incur for employing one employee per year. The monthly salary and other added benefits that the company pays to an employee are actually calculated as the cost to the company. The CTC package is a commonly used term for denoting this in a company.

CTC includes all monetary and non-monetary amounts spent on an employee when they start working for the company. They are part of the remuneration structure but are not received as a salary and yet the CTC is definitely increased. Everything from reimbursed money to gross salary to the health insurance is part of the CTC salary as well. Most of the CTC consists of mandatory deductibles on the company and employee’s behalf.

CTC = Direct Benefits + Indirect Benefits + Savings Contributions

Also, See: Gross Salary | Fixed Pay | Basic Salary

Get Started

Solving Real Business Challenges with a Robust & Impeccable System

Any Query? Reach Out To Us.

We are here to help you find a solution that suits your business need.

Watch a Demo

Get a visual representation of how we work!

Schedule Demo
Get in Touch

Our sales expert is just one call away to meet your needs.

Get In Touch
Start Chat

Have a question?
Chat with Us

Start Chat

Manage Your Payroll in
A Few Clicks

Click Here