![]() ![]() CTC should not be confused with the take-home salary as this is a cumulative salary of all direct and indirect benefits.ĬTC= Direct Benefits + Indirect Benefits + Savings Contribution ![]() CTC includes all the salary components such as basic salary, house rent allowance (HRA), travel allowance, pension fund, provident fund, medical insurance and incentives (if there are any). There are some important components of salary like net salary, gross salary, take-home salary, and cost to the company (CTC) that needs to be understood by every employee before proceeding for employment.ĬTC means the expenses that the company bears for hiring the service of its employee. The salary of an individual can depend on a lot of factors like his/her profession, demand and supply, location, skills, experience, tax bracket they fall into, and their salary structure. Salary is an amount paid by the employer to the employee in exchange for his services in the company either monthly or annually. Read on to clear your doubts and to avoid any kind of heartburn that may be created later: What is Salary? Though they are used commonly, most people do not really know what words like take-home salary or CTC mean, and what their differences are. Terms like gross salary, net salary, CTC, etc, are often misunderstood for having the same meanings. If you have recently started a job or are planning to take one up soon, knowing some specific salary terms might be a necessity.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |