Dikshit.tgs
Human Resources Professional
Amar1109
Student
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
Rajusiachen
Leadership & Motivation
Kesavkoundinya
Associate Professor- Mba College
Shaleni
Student
+2 Others

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Hi All, May I know the exact meaning for CTC? Iam bit confused between CTC and Gross CTC..Kindly help the same..
CTC means cost to company
it includes
1-Fixed salary i.e Basic,DA,HRA,PF,PT
2-Variable salary i.e Incentive,Bonus,All allownces,Performance pay
3-Benefits i.e holiday package,telephoe,medical,leased accomodation
These put together forms CTC

Hi Kanaka Durga,
As rightly said by Mr. Kumar Sambhab Amar Ayoti Nayak, CTC is the total cost a company spends directly in terms of the wages to the employee.
More in detail,
Take Home = Basic Pay + HRA + DA + Transport Allowance (If applicable) + Shift / Attendance Allowance (As applicable) and any other fixed earning
Gross = Take Home + PF deductions + PT deductions + ESI / GMI deductions + Variable Pay (If any) + any other deductions as applicable as per the company policies.
CTC = Take Home + Gross
The above is as per the regular standard salary annexure's. However, the pattern may change as per the company policy.

Dear Amar 1109 & Dikshit,
I agree with both of you that CTC is cost to the company. May I ask you one question, Sir? If CTC is cost to the company, then how PT is part of CTC. According to my knowledge which I gathered from people like you, PT is a deduction from salary.
Can any one enlighten on this and clear my doubt? I am sure, many HR professionals are confused on it.

Hi Keshav,
As far as I understand CTC, unless I am very much mistaken, apart from PT, ESI & PF are also deductions (though these are paid back to the employee) and yet part of CTC.
Any expense spent, apart from the operational expenses like seat cost, electricity payments, space rent etc., are part of the CTC.

According to my point of view, there is no gross ctc.There is ctc and gross salary or gross pay.
GROSS SALARY:-
Gross salary includes heads such as basic,
DA, special allowances, HRA, employers contribution to PF,
ESI, Gratuity and other monthly emoluments.
CTC:-
But CTC is Gross Salary + Bonus, Medical, LTA, and other
annual emoluments paid annually.
Simply speaking,
Gross Salary= basic+ DA+ special allowances+ HRA+CCA+ other
monthly emoluments
CTC = Gross Salary + Bonus + Medical + LTA+ other annual
emoluments paid annually.

Dear Kanaka Durga,
CTC includes all compensation & benefits given by company to employee which includes company accommodation,car,Employers contribution of PF/ESI, Gratuity,Bonus,LTA,incentives,etc., Actually it includes leave encashment also, but normally maximum companies will not consider it while offering CTC to recruits.
Eg of CTC chart for Rs 6 lakhs/PA CTC is mentioned below:
Salary Monthly Annual Other Benefits Annual
Emplyr PF 780 9360
Basic 17553 210633.6 Emplyr Mediclaim 1032 12380
HRA 7021 84253 Bonus 1462 17546
Other All 2908 34897 LTA 2000 24000
FoodAll 3000 36000 Grat 844 10127
Att Bonus 400 4800 Total 6118 73412
Unifo All 4000 48000
Proff All 4000 48000
Conv 4000 48000
Edn Allow 1000 12000

Gross 43882 526584

Deductions
CTC 39882 50000 599996 PT 200
pf 780

Tot Ded 980

Net Pay 42902
Regards,
Binu

CTC is the total amount invested by a company for an employee. This includes the the cash compensation (like salary, incentives etc) and the compensation by kind (like rent-free accommodation, car + driver etc). CTC also includes the company's share in the EPF / ESI etc.
Rajusiachen

Madam
as rightly pointed out by some members its the total expenditure incurred on employee ( may be remuneration/wage ) per year basis.
the standard deductions and matching contributions like PF ( as per Govt. norms from the company side also to be included in cost to the company policy.
This needs to be clarified to the employees who are joining with your company well in advance. other wise take home pay differences are visible
on first salary.
with warm Regards
kesav koundinya
store manager- TRENT

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™