Educationbelt attempts to de-mystify the concept of Cost to Company (CTC) and allow the employees go well prepared for this esoteric topic in advance. Few of the components of CTC are shown below: Basic salary, Dearness Allowance, Conveyance Allowance, House Rent Allowance, Medical Allowance Leave Travel Allowance, Vehicle Allowance, Telephone Allowance, Special Allowance, Incentives / Bonus.
Embedded Files
Cost to Company is a term which essentially implies the amount of expenses the company will spend on an employee in a particular year. This is from the company’s point of view. However, from the employee's perception CTC is the amount which the company have had projected as salary, which they expect to take home as a salary. “Employees hallucination”, which I would say here as the CTC and the actual salary which the employee is going to receive will never be the same.
We, at Educationbelt, we help you to understand this difference and help you understand the concept of CTC. This is useful for all your salary negotiations as well as understanding your payslips on month on month basis. This will lead to better financial planning and informed decision making.
Page updated
Report abuse