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