HR Glossary
CTC (Cost to Company)
The total amount a company spends on an employee annually, including salary and all benefits.
Definition
CTC represents the full cost an employer incurs for an employee in a year — base salary, allowances, bonuses, employer PF contribution, insurance, and other benefits combined — not just the take-home pay the employee receives.
Why It Matters
Because take-home pay is always lower than CTC, clearly explaining the breakup to candidates and employees prevents confusion and disputes.