What is the full form CTC?

CTC stands for "Cost to Company".

This term is used to describe the salary package of an employee. This term is famously used in the countries like India and South Africa. It defines the total expense that the company is willing to offer to an employee in exchange for the work and labor expected from the individual during the course of a single year.

It is calculated by adding salary to the cost of all additional benefits an employee receives during the service period. If an employee's salary is Rs.5,00,000 and the company pays an additional Rs.50,000 for their health insurance, the CTC is ?5,50,000.

People often get confused with it the term ‘pay slip’, in fact, CTC serves many other fields that include healthcare benefits, housing, travel, dentistry, and other major health benefits. This whole package is decided by the individual companies and this doesn’t contribute to the fact that the terms and conditions provided by the different companies will be similar to the other. The CTC facility is a major attraction and also a need for an employee. Often based on the facilities provided under this notion serves as a major deciding point for an employee. Whereas, the payslip only signifies the payment that may or may not hold the facilities as per it CTC does.