CTC Full Form: Cost To Company, CTC stands for Cost To Company. It is the annual salary package of an employee. It indicates the total expenses that a company/organization spends on an employee in a year. Nowadays, most companies provide their salary in the form of CTC.
- Category: Business
- CTC Full Form in Hindi: कंपनी को लागत
- CTC Full Form in English: Cost To Company
what is the full form of CTC?
The full form of CTC is Cost to Company. CTC is the annual salary package of an Employee. It refers to the total expenses that a corporate organization spends on an employee in a year. Nowadays most companies provide their salary as CTC. The CTC is not the actual salary of the employee, it also includes the facilities given to the employee during the service period.
CTC clearly means that it is not just salary but it also includes many things like Food, Medical Facilities, Phone Bills, Home Facilities, Travel Allowance, etc. However, some companies especially big investment banks also add office rent to the CTC package.
Apart from this, if your company is providing you accommodation, car, driver, etc. facilities, then the money for all these facilities will also be added to your CTC. Therefore, some components of your CTC have not been translated into actual Take Home Cash and what you take in hand is always slightly lower than your CTC.
What is CTC?
People who have joined the job. They fully understand this. That when you are select for the job. Then you ask How much payment package do you want for this job. The company adds all the expenses under this package. Which is given as benefits to the employee. And this call CTC i.e. Cost to Company.
In simple words, apart from giving salaries to the employee, the additional expenses which are incurred by the company + are called Cost to Company. The company adds the following expenses under CTC, such as – Employer’s share in EPF, Life Insurance & Health Insurance Premium paid by the company, Interest on Loan Subsidy, Food and Transport Facility, and Variable Pay related to joining bonus in CTC like One. Time payment is also include, in addition to this, many other allowances and benefits are also add.
If seen, CTC is a cost, which is incurred by the company to maintain the services of the employee. It is also call Variable Salary, because it keeps changing depending on different factors, due to which the employee gets a different Salary every time.
What is the meaning of CTC?
This CTC has a full form Cost to Company, CTC is the annual salary package of an Employee. It refers to the total expenses that a corporate organization spends on an employee in a year. Now-a-days most companies provide their salary as CTC, CTC is not the actual salary of the employee. It also includes the facilities given to the employee during the service period.
Benefits of CTC
There are many benefits of CTC here, you will be surprise to know that it has so many benefits. What are the benefits of CTC? Let us know that apart from salary, an Employee gets many other types of benefits from CTC. In this, some benefits are available to the Employee along with salary. Although you will get some benefits later, you must know. All these benefits have been divided into three parts, which are as follows:
- Direct Benefits
- Indirect Benefits
- Saving Contributions
Direct Benefits – Direct benefits are call the benefits which are add to the employee along with the salary, these benefits are as follows –
- Basic Salary
- House Rent Allowance
- Vehicle Allowance
- Mobile Phone Allowance
- Incentives or Bonuses
- Conveyance Allowance
- Dearness Allowance
Indirect Benefits – Indirect Benefits are those benefits that are receive separately from the salary of the Employee. You can see the names of all these benefits below.
- Income Tax Savings
- Office Space Rent
- Company Leased Accommodation
- Food Coupon, Subsidized Meals
- Interest-Free Loans
Saving Contributions – These facilities are available to the Employee only after taking retirement from the job. You can see the names of all these facilities below.
- Employer Provident Fund
- Superannuation Benefits
What is the difference between salary and CTC? (CTC full form)
The first CTC in Salary is the second, Gross Salary and the third is Net Salary. These three are only part of the salary, but they vary. like:-
CTC (Cost to Company)
In return for working in the company, the salary that the employee gets + the amount spent by the company on its employee is call CTC. In simple words, the cost of salary and facilities provide by the company to the employee’s account is call Cost to Company.
CTC = Gross Salary + PF + ESIC + Leave Pay + Gratuity.
Gross salary means the salary received by the employee in lieu of the service given to the company, which goes to his account. That is, the salary receive by the employee does not include any overtime nor tax is deducte from it.
Gross Salary = Cost to Company (CTC) – Employment PF Contribution (EPF) – Gratuity.
Net salary, which is also known as ‘take-home salary or in-hand salary by the employee. The net amount that is left after deducting tax, all deductions, and statutory deductions from Gross Salary, where does the Net Salary go.
Net Salary = Gross Salary – Income Tax – Employee’s PF Contribution (PF) – Professional Tax.
FAQ’S About CTC Full Form
Ans. Cost to the company (CTC) is a term for the total salary package of an employee, used in countries such as India and South Africa. … If an employee’s salary is ₹500,000 and the company pays an additional ₹50,000 for their health insurance, the CTC is ₹550,000. Employees may not directly receive the CTC amount.
Ans. Hence CTC is a sum of Gross Salary and Benefits. … So we can represent CTC as a sum total of Earnings and Deductions. CTC = Earnings + Deductions. Here, Earnings = Basic Salary + Dearness Allowance + House Rent Allowance + Conveyance Allowance + Medical Allowance + Special Allowance.
Ans. The employees’ CTC is the gross amount, while the amount of salary one gets to take home is the net salary. In simpler words, gross salary is the monthly or yearly salary before any deductions are made from it.
Ans. CTC means Cost To Company. … Per month salary and other benefits that the company pays an employee, are actually costs to the company. CTC package is a term often used by private sector Indian companies while making an offer of employment. CTC contains all monetary and non-monetary amounts spent on an employee.
Ans. Current CTC is the money invested in you by your present company (where you are working right now) in terms of pay and allowances as mentioned above. Expected CTC is the cost to the company on you, what you are expecting while either joining a new company or what you are demanding for pay increment to your present company.