Payroll
CTC Full Form: Cost to Company
Cost to Company (CTC) is the total annual cost an employer estimates for employing a person.
In simple terms
CTC can include fixed salary, allowances, employer contributions, insurance and performance-linked amounts. It is not the same as take-home pay because deductions and some CTC components do not appear as cash salary each month.
Example
A ₹9 lakh CTC package may include basic pay, allowances, employer provident fund contribution and an annual bonus.
Frequently asked questions
Is CTC monthly salary?
No. It is usually expressed annually and includes more than monthly cash salary.
Is CTC the same as in-hand salary?
No. In-hand salary is the amount paid after applicable deductions.