CTC is actually the total Cost to Company and varies depending on individual company's philosohy regarding compensation positioning.
Some companies do calculate the benefits given to staff also under the term of CTC while certain companies keep those separate. It depends on company how they want to articulate it, but primarily CTC comprises of -
Annual Base Salary - In Indian context, , the term "Base salary" is generally construed as "Basic" salary, while in European context, there is only the Base salary and no other "cash allowances". You might like to keep this in mind while designing the structure
Cash Allowances (Both monthly +Annual) - Includes components like HRA,Conveyance,LTA,Spl Allowance,CCA etc. There are NO mandated heads which need to be necessary part of this.
Annual Guaranteed Cash - Is a summation of Annual Base salary + Cash Allowances as mentioned above
Annual Total Cash - Is the addition of Annual Guaranteed Cash + Variable Pay/Sales Incentive/Profit Sharings
Annual Total Remuneration - Annual Total Cash + Non cash benefits like Loans/Car/Petrol/maintenance/Driver/Club Membership/Housing/Insurance premium etc
CTC would be the sum of Annual Total Remuneration given above + retirals like Gratuity/PF/Superannuation costs added to the same
5th September 2007 From India, Bangalore