What is CTC? How to Calculate Cost to Company (CTC)?

CTC Explained: What is Cost to Company & How to Calculate It?

CTC (Cost to Company) is the total amount an employer spends on an employee in a year. It includes the salary, benefits, bonuses, and other perks offered to the employee. However, the CTC is not the take-home salary, as certain deductions (like PF, taxes, and insurance) apply.

🔍 Components of CTC

1. Basic Salary – Fixed component of the salary.
2. House Rent Allowance (HRA) – Given for accommodation expenses.
3. Dearness Allowance (DA) – Adjusted for inflation.
4. Provident Fund (PF) – Contribution to employee retirement savings.
5. Medical Insurance & Other Benefits – Provided by the employer.
6. Bonuses & Incentives – Performance-based payouts.

🔍 How to Calculate CTC?

Use this simple formula:

CTC = Gross Salary + PF + Bonuses + Other Benefits

Example:

• Basic Salary: ₹50,000/month
• HRA: ₹20,000
• PF: ₹6,000
• Medical Allowance: ₹2,000
• Bonus: ₹10,000

📌 Annual CTC Calculation: (₹50,000 + ₹20,000 + ₹6,000 + ₹2,000 + ₹10,000) × 12 = ₹10,32,000 per year

🔍 Calculate Your CTC Online!

Save time and get accurate results using our CTC Calculator 🔽

👉 Click Here for CTC Calculator

📊 Visual Representation:

🔵 CTC → 🏦 Basic Salary + 🎁 Perks + 💰 Bonuses + 🏥 Insurance + 🏡 HRA

Now that you understand CTC, always check the breakup details before accepting any job offer!

💬 Have Questions? Drop them in the comments! 🚀