Cost to company (CTC) is the total an employer spends on you in a year. It is not the same as your gross salary, and it is very different from what reaches your bank account.
Common components
- Basic salary, often 40–50% of fixed pay
- House rent allowance and other allowances
- Employer contribution to provident fund
- Gratuity, which is paid out only after eligible service
- Variable pay or bonus, paid on performance
- Insurance and other benefits
From CTC to in-hand
Your monthly take-home pay is your gross monthly salary minus your own provident fund contribution, professional tax and income tax deducted at source.
Ask for the break-up
Before accepting an offer, ask for a written salary break-up showing fixed, variable and benefit components. It is the only way to compare offers fairly.
