What is the Full form of CTC?

The full form of CTC is Cost To Company. CTC is the employee’s annual salary package. It reveals the net costs a firm or organization spends on a worker over one year. Now a days, most companies are offering their salaries in the form of a CTC. It does not indicate the employee’s actual pay. It also contains the facilities provided to the employee during period of service. CTC is explained in the equation as given below.

CTC = Gross salary + other expenses + Incentives

Few points about CTC

• CTC is the employee’s annual salary package.
• CTC reveals the net costs a firm or organization spends on a worker over one year. Now a days, many companies are offering their salaries in the form of a CTC.
• CTC does not indicate the employee’s actual pay.
• It contains the facilities provided to the employee during period of service.