Cost to company - wikipedia Cost to company Not to be confused with expense, liability ( financial accounting ), or accounts payable. This article does not cite any sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. ( January 2016 ) This page will be copied to Wiktionary using the transwiki process. The information in this article appears to be suited for inclusion in a dictionary, and this article 's topic meets Wiktionary 's criteria for inclusion, has not been transwikied, and is not already represented. It will be copied into Wiktionary 's transwiki space from which it can be formatted appropriately. If this page does not meet the criteria, please remove this notice. Otherwise, the notice will be automatically removed after transwiki completes. If this template is placed on a glossary article, it should be removed immediately after the transwiki is completed, and not replaced with ( ( TWCleanup ) ), which disrupts the encyclopedia to force a point of view on others. Cost to company ( CTC ) is a term for the total salary package of an employee, used in countries such as India and South Africa. It indicates the total amount of expenses an employer ( organization ) spends on an employee during one year. It is calculated by adding salary to the cost of all additional benefits an employee receives during the service period. If an employee 's salary is ₹ 50,000 and the company pays an additional ₹ 5,000 for their health insurance, the CTC is ₹ 55,000. Employees may not directly receive the CTC amount. Difference between CTC and pay slips The CTC can include many elements in addition to salary / wages, such as health care, pension and allowances for housing, travel and entertainment. Tax is also deducted from the cash amount the employee receives directly. The term CTC is a trick used by companies in India to make employees believe that they are a cost to a company than a asset with which a company generates revenue. A hypothetical breakdown of CTC is given below : Component of salary Amount ( ₹ ) Taxable amount Basic salary 2, 40,000 2, 40,000 House rent allowance 60,000 36,000 Conveyance allowance 8,000 0 Entertainment allowance 6,000 6,000 Overtime allowance 6,000 6,000 Medical reimbursements 10,000 0 Gross salary 3, 30,000 2, 88,000 Medical insurance 3,000 PF ( 12 % of basic salary ) 28,800 Total benefit 31,800 CTC = gross salary + benefit 3, 61,800 Break up of take home salary : Deductions / take home salary Amount Tax ( 10 % of taxable amount ) 28,800 Employee provident fund ( 12 % of basic salary ) 28,800 Professional tax 2,500 Total deduction 60,100 Gross salary 3, 30,000 Net salary ( gross - deduction ) 2, 69,900 Monthly take home salary 22,491 References See also Employment Retrieved from `` https://en.wikipedia.org/w/index.php?title=Cost_to_company&oldid=807065100 '' Categories : Employment compensation Hidden categories : Articles lacking sources from January 2016 All articles lacking sources Copy to Wiktionary Talk About Wikipedia Add links This page was last edited on 25 October 2017, at 17 : 41. About Wikipedia

Question: what is full form of ctc in salary
Answer: Cost to company