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Cost to Company (CTC)

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Cost to Company (CTC) is the total amount of money spent by a company on an employee in a year, including salary, bonuses, benefits, and any other perks. CTC stands for Cost to Company, reflecting the comprehensive nature of the employee's compensation package.

CTC meaning

CTC full form

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What is

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Basic Salary

Allowances

Bonuses

Provident Fund (PF)

Other Perks

CTC  includes following Components

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Difference between CTC and LPA:

–CTC (Cost to Company)  Encompasses all the expenses incurred by the company on an employee, including salary, benefits, bonuses, etc., get idea of employee's compensation .

"– LPA (Lakhs Per Annum)  Simply refers to the annual salary in lakhs, excluding any additional benefits or perks provided by the company. It's a  annual salary."

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Calculating In-Hand Salary

How to calculate in hand salary from CTC?

To calculate the in-hand salary from the CTC, one needs to consider deductions like  taxes,  PF Contributions, and  other deductions.

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