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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.
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What is
Basic Salary
Allowances
Bonuses
Provident Fund (PF)
Other Perks
“–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."
Calculating In-Hand Salary
To calculate the in-hand salary from the CTC, one needs to consider deductions like taxes, PF Contributions, and other deductions.