What is CTC Full Form?

Here in this article, you will learn about what CTC full form is, short overview, and its importance in employment as well as organization.

CTC is the total amount of salary package offered as employment by the employer (organization) to show the total remuneration. In other words, CTC is a term used for the salary package in many countries like India, South Africa, Indonesia, etc.

CTC Full Form & Overview


CTC full form (stands for) Cost to Company, which means the total amount of expenses of an employee to be bear by the organization (or employer). It signifies the total amount of salary package offered, including additional costs, perks, and benefits per annum.

CTC is calculated based on the salary received and by adding all the benefits and perks during the employee’s service period. For example, – suppose an employee’s salary is INR 45,000, and he/she is receiving medical insurance of INR 5,000, then the actual CTC is INR 50,000.

CTC may also include other exclusive benefits and offers to employees, including free meals, cab services, house rent, accidental insurance, petrol expenses, etc. Remember, CTC is always calculated, including all such payments or benefits given to an employee. It is not the salary given in-hand to them.

For a detailed understanding, you can also watch this video:

Phases of CTC

CTC Gross Salary: The CTC gross salary is the total amount before income tax and deductions given to an employee as salary package for a period of the complete financial year is CTC gross salary.

CTC Salary Package: The CTC salary package includes all monetary and non-monetary expenses of an employee. It is the package that combines in-hand salary, HRA (House Rent Allowance), Petrol expenses, daily expenses, free meals, cab services, etc.

CTC In-Hand Salary: It is the amount (in-hand) of salary given to employees excluding all other monetary and non-monetary benefits. It is also known as the basic salary of an employee.

CTC – Non-Monetary Benefits

Non-monetary includes all other benefits and perks given to the employees for which they don’t have to take the stress. Besides, these benefits are handled by the organization, and employees enjoy them. Note this all perks do add value to your CTC in monetary terms. Let’s have a look at all of them.

  • Interest-free loans (if applicable in any CTC)
  • Food coupons, movie vouchers, and shopping discounts
  • House Rent Allowance (HRA)
  • Medical, health, or life insurance cover by the company
  • Free cab or taxi service for pick-up and drop
  • Income tax savings and other benefits
  • Employee P.F. (Provident Fund)
  • Gratuity

These are some of the most common non-monetary CTC benefits given to employees in all MNC’s and organizations.

Final Words

Whenever you apply for a job or when a company asks for your current CTC, never forget to mention all such benefits if you are availing them from your current situation. Moreover, CTC’s for long term benefits, such as PF, is the most important. If you apply for a job, don’t forget to ask your employer for such CTC benefits.

So, this is the final takeaway, and you are now clear with CTC full form, and it’s importance. If you feel like something more you want to know, then please let us know in the comment box below.

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