Understanding CTC: What Does Your Cost to Company Really Include?

What is included in CTC (Cost to Company)?

Thank you for reaching out with your question about CTC (Cost to Company). The components typically included in CTC are the employee's salary, benefits, bonuses, and any other perks or allowances provided by the company. It is important for both employers and employees to have a clear understanding of what is encompassed in the CTC to ensure transparency and clarity in compensation packages. If you have any specific questions regarding CTC or would like further clarification, feel free to ask.

Components of CTC (Cost to Company)

CTC shall include all costs involved in employing a person. It consists of salaries and allowances in actual terms, incentives, and performance-based variables projected to the maximum. Additionally, it includes payments made by the employer towards social security funds, like EPF, ESI, etc., bonuses payable yearly, and gratuity, which is payable when the employee leaves the company after five years of continuous service, calculated on the present salary.