Know What CTC (Cost To Company) Comprises?

These days everyone is worried about their Net Salary and CTC. Today we are telling you in detail what CTC comprise of.

Right after graduating from a top B-school, Hema landed her dream job with an e-commerce MNC. Her Rs 35 lakh starting pay package was much higher than what her peers had bagged and Hema was proud of her achievement.

According to Hema’s calculations, she ought to have been getting around Rs 3 lakh per month. However, when her first salary was credited to her account, the amount was only Rs 1.8 lakh. An aghast Hema now wants to know how that happened.

The package that Hema was so proud to have cracked was what is technically known as the Cost to Company or CTC in human resource parlance. It comprises all that a company spends on her. If something is an “expense” for a company because of Hema, it would form part of her CTC.

 

She might realize that even a job with low CTC can lead to a higher take-home salary because the package with the higher CTC was inflated using various components.

CTC (Cost to Company) Components

Before discussing your CTC components let us look at your salary components:

  • Basic
  • Dearness Allowance
  • HRA
  • Conveyance Allowance
  • Education Allowance
  • Performance pay
  • Bonus
  • Medical Allowance
  • Washing Allowance
  • Telephone or Mobile Allowance
  • Leave Travel Allowance

All above component are part of your take home salary and CTC also. In other words total of all these components will make your salary.

Have you ever been to situation where company cheated you with fake CTC component?

Do share your experience with us!

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