HR Glossary

CTC (Cost To Company) (Need An Example)

CTC is the yearly expenditure that a company spends on an employee. Each employee spend depends on their salary and variable. CTC is calculated by adding salary and additional benefits that an employee receives such as EPF, gratuity, house allowance, food coupons, medical insurance, travel expense and so on.
CTC in colloquial terms is the cost an employer bears to hire and sustain its employees.

CTC = GROSS SALARY+ BENEFITS