Cost To Company: “Cost to Company” is the termCompanies to calculate the total cost to be used, that is, all costs associated with an employment contract. Most CTCs include mandatory deductibles. These include deductions for pension funds, medical insurance, etc. They are part of employee salary structure, but employee does not get them as part of a pay check.
CTC differs from one company to another and each company has its own structure and its own salary components. It includes benefits, such as statutory bonuses,allowances and administrative expenditure other than the employee's gross salary. The total CTC need not be the actual salary in hand at the end of the month.
CTC breakup includes various components like:
In India CTC Salary Distribution will be
Basic Salary + HRA + DA
Conveyance + Medical + Other / Special Allowance if any
Employers Contribution for PF (12% of Basic)
Employers Contribution for ESIC (4.75% of Gross)
Employees Contribution for PF (12% of Basic)
Employees Contribution for ESIC (1.75% of Gross)
Gross Salary = (A) + (B)
CTC = (A) + (B) + (C)
Net in Hand = (A) + (B) - (D) ...
Salary break up as:
For example consider the calculations below on monthly as well as on yearly basis
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