rao533 Started The Discussion:
Hi everybody, i would like to know about CTC. what it means exactly. please explain me.
Posted 30th April 2007 From India
CTC includes every thing like Basic,HRA,CCA,other allowances,Employer’s contributions in ESI,PF,Gratuity,Bonus/Ex-Gratia etc.
Posted 2nd May 2007 From India, Bangalore
hi ctc means cost to company.... it includes all the expenditure the company does on an individual.......like ur basic, hra,da,other allowances,bonus,pf,lta,er contribn to pf etc............
Posted 2nd May 2007 From India, Khopoli

cost to company has alredy been mentioned above.but beware to know that properly before joining a co. It is also a way by which co.attracts ppl.medical insurance premiums or training costs or leave allowances may be included in that,whch u may not be actualy using during ur work life.

amrita :)
Posted 2nd May 2007 From India, Delhi
a good 1 amritamaity... i have heard of cos which give a ctc of 8 lacs but actually in that 2 to 3 lacs is for accident insurance and other such stuffs...so its very imp to know the ctc break up...
Posted 2nd May 2007 From India, Khopoli
it means "Company's Total Cost" which is inclusive of PF and all other benefits that the company gives you.and It is the annual salary that you normally get.It is the cost incurring for the company when they employ you.
Posted 2nd May 2007
You may refer the web site at: http://www.abbreviations.com/CTC It used to be abbreviation of Contact. John
Posted 2nd May 2007 From China, Shanghai
oh ya... thanks a lot.....thought it was a genuine question. gr8....appretiate your feedback and sense of humor.. ragards Anu
Posted 2nd May 2007
i to all hr guru im ankitha i need some information abt CTC, hw to calculate, hw to do ? regarding tdis topic any one pls explain me briefly anu.ankitha@gmail.com regards Swetha
Posted 2nd May 2007 From India, Bangalore
CTC stands for cost to the company i.e the total expenditure of the company towards a particular employee. It includes each and every cost in terms of money and materials, some of the components are-
Gross Salary
PF Contribution from employer side
ESI or Medical contribution from Employer side
Cell Phone Allowance
Hard furnishing goods
Food coupons etc.

general rule followed is:

Basic Pay (Base pay + employers contributions towards retirals: PF, Gratuity, Superannuation Fund) +
Allowances (all cash allowances like Housing(hra), Medical, Conveyance, Education, etc.)+
Performance Pay (fixed or variable bonus, estimated value of ESOP)+
Any other cashable benefit (mobile phones, fuel charges, food coupons, etc.)

All reimbursable allowances , professional development,

Posted 2nd May 2007 From India, Khopoli
hi everybody, can anyone plz help me about compensation management in detail?how to make compensation structure? neharika
Posted 3rd May 2007 From India, Calcutta

As its rightly mentioned by other members CTC that's the offered pay on paper... the actual in-hand pay is usually much less, as tax and other deductions are not included in the CTC . As it very aptly means cost to company i.e the sum total of all the expenses incurred on you per month. For example ,it can include your monthly salary plus other benefits like free accomodation,telephone,petrol expenses for your car,bonus,salary of driver of your car etc.Hope i am correct, if not pls provide your inputs.
Anjali :D
Posted 3rd May 2007
hi neharika i have an excel sheet which i m sure will clear ur query .....kindly give me ur email address so that i can mail it to u.
Posted 3rd May 2007 From India, Khopoli
Hi people

It is nice to know about CTC.

In my company there is 24% of PF cutting & both the Employees & the Employers contribution is deducted from Employees salary itself. How can I describe the CTC in such case.

Please somebody tell me this information.

Posted 3rd May 2007 From India, Hyderabad

m not sure about that but what i strongly feel is that the employer's contribution towards th ePF will count as CTC.
this is as per my knowledge

anyone who knows better about this plz through light on this matter

Posted 3rd May 2007 From India, Delhi
Cost to Company is a buzz word to describe how the company can slowly pay you less and less, and remove all your benefits, until you are "self funded" - in other words you pay for all your "benefits" yourself, while the company receives the tax benefits for these payments. This improves their profit ratio, and if this system is extrapolated, you will eventually pay the company to work there. So you'll need a second job to fund this. :-)

CTC - Cost to company is a trick of a company and HR department, to show we are paying a big salary, but unfortunatly it is just bubble. They overload total expences of human resorces on salary, and show that they are paying this much salary to the staff. but actualy they pay less and show more. For example....your salary is 6.00 Lacs p.a. Means ... you are getting 50,000/- per month. But actuly person gets only 25,000/- per month...all other money is deducted for facilities.. Means we are paying for getting facilities, but company shows they are giving us good facilities in the organization. In short, we pay from our salary for getting facilities, but company says they are giving good facilities to there staff. So you are paying for even unwanted facilities which you dont need. Before deciding CTS ask for breakup of facilities.
Posted 3rd May 2007 From India, Mumbai
Hi All,

I have seen that its a long chain is going on over CTC, find below the details of CTC, which was already been provided by me on other posts..

CTC stands for cost to the company i.e the total expenditureof the company towards a particular employee. It includes each and everycost in terms of money and materials, some of the components are-
PF Contribution from employer side
ESI or Medicalcontribution from Employer side
Cell Phone Allowance
Hard furnishinggoods
Food coupons

The contents of the salary break up is as below, you can prepare it at the
suitability of your own.
HRA would be50 or 60% of basic.

Other Allowance
MobileReimbursement / Month
Gross Per Month = Sum of all the above.
GrossPer Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESIContribution = 4.75% of Gross/Annum
Medical = The mediclaim facilityprovided to an employee who are not covered under ESI as the maximumceiling for ESI is 10000/Month.
Getting more than this will be coveredunder Mediclaim or it depends on
company policy

Annual Fixed GrossCost= Gross/Annum+PF+ESI+Med

EX-Gratia/Bonus = A fixed amount asBonus

Annual Total Cost = AFGC + EX Gratia/Bonus
Annual total costis also called as CTC.

Hope now it will be very much clear toyou,,
if you have any query feel free to ask.


Amit Seth.
Posted 4th May 2007 From India, Ahmadabad
CTC means cost to the company from the firm perspective. it doesnt mean the total salary that the individual can expect.
While looking into a ctc calculate your gross by removing the retiral benefits contributed by the company and also the variable pays which you would never know always
Posted 5th May 2007 From India, Bangalore
CTC Means

1. Cost To Company, Which includes all HRA,TA,DA, Traveling etc.

2. CTC Stand For Certified True Copy, which is basically use for to show original document i.e partnership deed, passport, ration card etc.

Ok Dosto...........
Posted 17th August 2010 From India, Delhi

CTC (Cost to Company) means total cost of employee to the organization, CTC means employee and employer share include.
Such as Gratuity, ESIC (Employer and Employee), EPF (Employer and Employee), Earned leave, Bonus, Insurance, Reimbusement.

Vipul Johri
Posted 17th August 2010 From India, Delhi
dear sir, what’s meaning of CTC both side contribution of PF in employee salary in CTC. kindly suggest me
Posted 30th August 2014 From India, Delhi

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