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The full form of CTC is “Cost To Company“. The total annual cost incurred by the company on account of hiring a employee during one year is called CTC. Cost to company (CTC) is a term for the total salary package of an employee, used in countries such as India and South Africa. It is calculated by adding salary to the cost of all additional benefits an employee receives during the service period. If an employee’s salary is ₹55,000 and the company pays an additional ₹5,000 for their health insurance, the CTC is ₹60,000.
It includes the in hand salary+P.F.+ ESI+ other perks the company is giving. Perks may include mobile bill, cafeteria allowances, transportation allowance and other special allowances. Employees may not directly receive the CTC amount. It addresses several areas related to service performance such as performance measurement criteria, customer support, guarantees and warranties.
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