Pay · HR glossary

CTC

Cost to company, or CTC, is an employer's stated total annual cost of employing someone, commonly used in Indian salary offers. It may include salary, employer contributions, benefits and conditional components.

Example

An offer's CTC includes cash salary, employer provident-fund contributions and a target bonus, so dividing the headline amount by 12 does not give monthly take-home pay.

What to keep in mind

CTC is not a standardised promise of cash earnings. Check the breakup, bonus conditions and treatment of provisions such as gratuity before comparing offers or estimating net salary.

Put it into practice

CTC breakup calculator

Further reading

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