Dear all,
I have been asked to give the current CTC in a company. Please clarify what is CTC means and what it includes?
Whether a new employer likes CTC to be more or less? What for he is asking that instead of gross package or take home salary?
Thank you.
22nd August 2007 From India, Coimbatore

Hr Practices
Rahul Kumar
Senior Hr Professional
Hr And Training
Training Officer
Quality Assurance Executive

CTC is Cost to Company and CTC is always the annual package..CTC is always the gross that company gives you it includes PF, Gratuity and other deductions..CTC is not in hand salary
22nd August 2007 From India, Pune
Hi Raj,
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Other Allowance
Mobile Reimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope now it will be very much clear to you,
if you have any query feel free to ask.
Amit Seth.
22nd August 2007 From India, Ahmadabad
Thanks Mithun.
By the way, the company in which I'm working for doesn't provide Gratuity, PF, etc. But spends amount for food, accomodation and TA charges. Whether it will be included in CTC? What is the normal CTC for a entry level professional in a manufacturing industry?
22nd August 2007 From India, Coimbatore
It really depends , i would say that its always better to talk to your HR and your finance department .They will give you the best information
22nd August 2007 From India, Pune
Dear Amit and Mithun,
I need a clarification. I was working outside India and I was paid only the basic salary + bonus. Food and accomodation was provided free of cost. Except this, there is no PF or ESI or other allowances. I also dont have a proper salary slip. In this case, how should i calculate my CTC.
22nd August 2007 From India, Coimbatore
Hi Raj..
During providing your CTC, you may clarify that your CTC includes Accommodations as well as Fooding expenses.. But yes must provide some relevant proof of the same it may be asked by the interviewer..
Amit Seth.
22nd August 2007 From India, Ahmadabad
Hi Rajkumar_Victor,
I may perhaps be able to simplify for you further.
CTC is an abbreviated form of 'Cost to the Company'. It means the total of all that the Company is spending on you. But 'Gross' is the total salary and benefits that you draw from a Company.
Companies over the years adopted the CTC concept so that they could compute the total money spent on an employee. So, CTC includes every expense (basic salary + allowances and non-official reimbursements) on you that you can imagine (except, of course, official expenses).
To calculate your CTC for your job abroad, you need to add your basic (i.e. base pay) and (fixed) bonus first. Then you have to calculate a money value for the accommodation, meals provided by the Company. (Think practically what you would have paid for the same accommodatin and food if you had to pay for it) Add all these and you will arrive at your CTC value.
23rd August 2007 From India, New Delhi
Thanks Mr. Amit and Mr. Rahul.
In short, I have calculated my CTC as
CTC = Basic + Bonus + Food + Accomodation + Other expenses (like flight charges, training expenses, etc).
Now I got a clear idea. :)
23rd August 2007 From India, Coimbatore
Sir, I think ESI Contribution = 1.75% of Gross/Annum, and 4.75% is the Employer contribution. Am I correct?
7th June 2009 From India, Thiruvananthapuram

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