CTC
Also called Cost to company
Cost to company: everything an employer spends on you in a year, including parts you never get in your monthly pay.
CTC stands for cost to company. It’s the full yearly cost of employing you, not what lands in your account. Take out the employer’s PF contribution, gratuity and similar items to get gross salary; take out tax and your own PF to get take-home. See every step in how your salary is taxed.
For a worked example from offer letter to monthly pay, see CTC vs in-hand salary.
Questions people ask
What is the full form of CTC?
CTC stands for cost to company. It's the total an employer spends on you in a year, including your salary plus things like the employer's provident fund contribution, gratuity and some benefits.
Why is my take-home much lower than my CTC?
Because CTC includes money that never reaches your monthly pay, like the employer's PF contribution and gratuity. From the gross salary that remains, TDS, your own PF contribution and, in some states, professional tax are also deducted before you get paid.
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