The full form of CTC is Cost to Company.

CTC full form is Cost To Company. It means total salary package & benefits received by employee in a year including free meals, cabs, interest free loans.

CTC means Cost To Company in India. CTC package is a term often used by private-sector Indian and South Indian companies while making an offer of employment to show the total remuneration.

Cost to Company (CTC) is the yearly expenditure that a company spends on an employee. Each employee spend depends on their salary and variable. CTC is calculated by adding salary and additional benefits that an employee receives such as EPF, gratuity, house allowance, food coupons, medical insurance, travel expense and so on. CTC in colloquial terms is the cost an employer bears to hire and sustain its employees.

Formula: CTC = Gross Salary + Benefits.

If an employee’s salary is ₹40,000 and the company pays an additional ₹5,000 for their health insurance, the CTC is ₹45,000. Employees may not directly receive the CTC amount as cash.

The gross salary before income tax and other deductions is what is listed as Cost To Company salary for a period of 12 months in a financial year.

The CTC package shows detailed break-up showing basic salary, HRA (House rent allowance), and other such allowances. Please note that CTC contains all monetary and non-monetary amounts spent on an employee.

CTC in a resume is generally asked to be filled in, to help the new employer know your current total gross salary (including any cash or non-cash benefits).

Take-home pay (known as in-hand salary in India) is the net salary after deducting income tax (TDS – tax deducted at source in India) and other deductions, from the gross monthly pay.

Use Take Home Salary Calculator – India to make a decision of accepting the new job offer or not by looking at your monthly in-hand earnings and deductions.

Do not just look at the figure of CTC as there could many components which may be misleading and may NOT form part of your monthly take home.