Full Form of CTC
Cost to Company
CTC Full Form is Cost To Company. CTC is nothing but the overall cost of an employee to a business or company. CTC includes various factors like basic salary and allowances like travel allowance, house rent allowance, leave allowance, conveyance allowance, phone allowance, medical allowance etc. Any individual applying to a professional company is always expected to fill in his current CTC and the expected CTC which is one of the essential criteria to employ an individual.
Nonetheless, there is a sizable difference between the take home or net salary and CTC which even experienced people are yet to understand. While switching jobs, most people tend to get convinced with the hike in CTC and later be disappointed to see that the net take away amount has not increased. This is because CTC includes the perks, contributions, PF, various benefits and other contributions. And the net salary is calculated after deducting the amount for the benefits and perks. This is something to be completely understood for by every employee.