Total Cost to Company (CTC)
What is CTC? Total Cost to Company Explained
CTC is the total amount a company spends on an employee annually: base salary, bonus, employer contributions (PF, ESI, gratuity), insurance premiums, and any other benefits. Common in India and parts of Asia as the headline number in offer letters.
The gap between CTC and take-home surprises many employees. An offer of Rs 15,00,000 CTC might result in Rs 85,000-95,000 monthly take-home after taxes, PF, and deductions.
When evaluating offers, always ask for the full breakup: fixed pay, variable, employer contributions, and benefits. Two identical CTC offers can have very different take-home pay.