What Is CTC (Cost to Company)?
Cost to company (CTC) is the total annual amount an employer spends on an employee, including basic salary, allowances, bonuses, and employer contributions such as provident fund and insurance. The term is widely used in India. Take-home (in-hand) salary is lower than CTC because it excludes employer-side costs and deductions.
CTC vs. In-Hand Salary
In-hand salary is what reaches the employee’s account after income tax, employee contributions, and other deductions; parts of CTC may be paid only annually or on conditions.
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🔗 Related Terms
More Income & Work Terms
- Billable Hours
- Billable Utilization Rate
- Business Overhead
- Commission
- Cost-of-Living Adjustment (COLA)
- Day Rate
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.