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Answer Posted / h.r. sreepada bhagi
CTC - Cost to Company is the term used to mean all
components of employee remuneration, that the company needs
to incur on an employee. This includes all indirect
benefits, and employer's contributions to various funds,
like EPF, ESI, Superannuation, pension, Insurance,
Incentives, Bonus, Exgratia, Perquisites, Stock Option,
Education facilities, etc. Gross Salary is always lesser
than the CTC.
One needs to know all the components of CTC while
negotiation the salary before joining a company, as the
employee may realise that his/her monthly salary is far less
than what was expected. One needs to ask the prospective
employer for detailed break-up before accepting an
employment offer.
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