Glossary
What is CTC (cost to company)?
Also known as: Cost to company.
CTC, or cost to company, is the total annual amount an employer spends on an employee in India, taking in base pay, allowances, bonuses and the employer's own statutory contributions, which is why CTC is larger than take-home pay.
CTC is a framing common in India. It bundles everything an employer pays on a person's behalf into one headline number, so it includes components the employee never receives as cash, such as the employer's provident fund contribution and the cost of certain benefits.
Because CTC mixes cash and non-cash components, the gap between CTC and in-hand pay can be large, and the split depends on how the structure is built. Breaking a CTC down into its parts is exactly what a salary structure or CTC calculator is for.
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