Cost to company is the total package offered to a candidate and is what is followed in countries like India, South Africa etc. It includes the actual salary or take home that a candidate receives and the additional expenses put on the candidate by the company. CTC can be take home in some cases depending on the company policies.
Cost to company meaning itself lies in its naming, that is the total cost to the company which not only includes the amount that the employee receives in hand but also includes the parts like health care, pension, cab, lunch and many other allowances, tax etc. CTC won’t include the expenses that are not directly related to the employee. In other words, CTC is the money that need not be spent by the company if the employee has left the organization.
Below table gives you an idea of what all is included in the earnings and what all are the deductions and any other annual benefits with some rough figures used
There are also some more benefits that are enjoyed in some companies annually like Individual Component (IC), Bonus, Exgratia, canteen subsidy, Company Component (CC), Coverage towards Group Mediclaim Policy (GMP), Coverage towards Health insurance scheme (HIS), Coverage towards Group Saving Linked Insurance (GSLI), Coverage towards personal accident, Employee deposit Linked insurance (EDLI), Coverage towards Group Term Life (GTL), Term Insurance etc.
All rights reserved © 2020 Wisdom IT Services India Pvt. Ltd