Full form of CTC in Salary – Full Form, Meaning, and Definition
The full form of CTC in salary is: COST TO COMPANY.
What is CTC in Salary with example?
The CTC is the total expense a company makes on an employee for a year. This expense includes the Employee’s basic salary, gratuity, provident fund, pension fund, travel allowance, and medical allowance depending on the company.
Hence your take-home salary is not your CTC but your basic salary.
How to calculate Net Salary?
Net salary is the salary you get after all the deductions of taxes, gratuity, EPF, allowances, etc. This is your take-home salary or basic pay.
NET SALARY = GROSS SALARY – TAX DEDUCTION – INCENTIVES ALLOWANCE DEDUCTION
What is Gratuity?
Gratuity is the part of CTC paid by the Employer to appreciate the service provided by the Employee in addition to the basic pay.
Which is better CTC or gross salary?
Gross salary is a part of your CTC. It’s the amount left after deducting gratuity and employee provident fund(EPF) and before deducting taxes and other allowances.
GROSS SALARY = CTC – GRATUITY – EPF
What is the difference Between CTC and net salary?
CTC is the total cost in financial form as well as other forms that the company holds for your staying in the company. Each and every aspect that the company pays for you be it your allowances, salary, training cost, food facilities, traveling facilities, medical facilities, etc is included in CTC.
Whereas Net salary refers to the financial amount that you receive every month in your payslip, after the deduction of income tax, PPF, EPF, duties from salary etc. Other expenses like that of CTC is not included here other than the monetary element.
What is the CTC package?
CTC package refers to a detailed break-up that shows the basic salary, house rent allowance, and other such things under all monetary and non-monetary amounts of money.
What is a CTC resume?
When new employees are hired, CTC in a resume is usually asked to be filled in, so that the new employers can know their current total gross salary which may include any cash and non-cash benefit.
What are the Benefits of CTC in salary?
- Basic salary
- Conveyance allowance
- Medical allowance
- Dearness allowance
- House rent allowance
- Transportation allowance
- Phone allowance
- Bonus or incentives
- City compensatory
- Company rented accommodation
- Loans free of interest ( if included in CTC)
- Medical emergency facilities
- Life insurance premium paid by the company
- Free transportation through cab or taxi
- Savings in income tax
- Office space rent
Is CTC monthly or yearly?
CTC has the total salary package of an employee. Monthly components, for example, basic pay, several allowances, and payouts are included in CTC. Yearly components like annual variable pay, gratuity, annual bonus, etc are also included.
What is the Employee Provident Fund?
Employee Provident Fund (EPF) is a scheme where both Employee and Employer have to give equal contribution which can be availed by the Employee at his/her retirement.