It includes basic salary, travel allowance, daily allowance, staff allowance, meal allowance, provident fund (employee and employer) and variable remuneration. It is known as CTC. Therefore, CTC = Net Salary + Deduction + PF on both sides + Variable Compensation + Incentives (if any). … 18,000 will be his salary in hand.
What is CTC in salary with example?
Business Cost (CTC) is a term used in countries like India and South Africa for an employee’s entire salary package. … If an employee’s salary is ₹500,000 and the company pays an additional ₹50,000 for his health insurance, the CTC is ₹550,000. Employees cannot receive the CTC amount directly.
How is the CTC calculated in salary?
Components of CTC Therefore, CTC is a sum of gross salary and benefits. … So we can plot the CTC as the sum of wins and deductions. CTC = Earnings + Deductions. Here, income = Base Salary + High Expense Allowance + Housing Allowance + Transportation Allowance + Sickness Allowance + Special Allowance.
What is CTC and Pay in Hand?
Salary in Hand = Gross Salary Income Tax Business Tax It is important to note that the CTC offered differs from what you actually receive at the end of the month. The difference between CTC and cash payment are the various deductions made at the time of payment.
What is the monthly salary of the CTC?
CTC. CTC or Cost to Company is the total amount a company spends (directly or indirectly) on an employee. It refers to the employee’s entire salary package. The CTC includes monthly components such as the basic salary, various allowances, remuneration, etc.
What does monthly CTC mean?
CTC: Refers to the total cost an organization spends on an employee, including your monthly CTC (base salary plus allowances and company contribution) and a guaranteed 13th check.
What is the CTC profession?
Cost to Business (CTC) is the annual cost that a company spends on an employee. …CTC is calculated by adding the salary and additional benefits an employee receives such as EPF, bonus, housing benefit, meal stamps, health insurance, travel expenses, etc.
What is the best CTC or gross salary?
An employee’s net compensation would differ from that of the CTC. The employee CTC is the gross amount, while the take-home pay amount is the net pay. Put simply, the gross salary is the monthly or annual salary before deductions.
What is CTC Breakup?
CTC stands for Cost to Company and is the total amount a company spends on an employee. This is basically the employee’s entire salary. He may not receive everything in cash. An amount can be reduced on behalf of the PF and health insurance, etc. CTC = gross salary + PF + bonus.
What is the difference between CTC and gross salary?
An employee’s net compensation would differ from that of the CTC. The employee CTC is the gross amount, while the take-home pay amount is the net pay. Put simply, the gross salary is the monthly or annual salary before deductions.
Is PF part of CTC?
Most employers pay 12% (referred to as PF) of base salary each month into the Employee Provident Fund account listed in the CTC. An employee also contributes 12% (called VPF). … Employer PF is owned by CTC and does not appear on the payslip.