Section: HR & People · CompensationDifficulty: Easy
Cost to Company
USUK
The total annual expense an employer incurs for a single employee.
Also: CTC · total package
Definition
Cost to Company (CTC) is the total compensation package an employer provides to an employee in a year, including gross salary, employer contributions to provident fund, gratuity, allowances, insurance premiums, and any other benefits. CTC is the figure typically stated in offer letters and represents the full cost from the employer's perspective. It is always higher than the actual take-home salary received by the employee.
Example
“The offer letter stated a CTC of ₹12 lakhs per annum, which included a gross salary of ₹9.6 lakhs plus employer PF contributions, gratuity, and health insurance.”
Synonyms
- total compensation
- total remuneration
- total employment cost
- annual package
Antonyms / Opposites
- net salary
- take-home pay
Images
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Related Terms
- Gross Salary
- Net Salary
- Provident Fund
- Gratuity