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CTC Full form

Full form of CTC

"Cost To Company" is the full form of CTC. CTC is the annual salary package of an employee. It reveals the net costs that a company or organization spends on a worker in one year. Nowadays, most companies offer their salaries in the form of CTC. It does not show the employee's actual salary. It also includes facilities provided to employees during service. CTC is explained in the equation below.

CTC = Gross salary + other expenses + Incentives

Some 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. Nowadays, many companies are offering their salaries as a CTC.
  • CTC does not indicate the employee’s actual pay.
  • It contains the facilities provided to the employee during the period of service.

Bases for CTC in an Organization

  1. Educational qualification?s

The educational qualification of the employee plays a very important role in deciding the CTC. So if your degrees are more suitable for your position in the company, then CTC will be higher than others.

  1. Previous salary

Your current salary also depends on your previous one. When joining a new organization, there is little chance that you will take a pay cut. Therefore, the Cost to Company (CTC full form) will also vary accordingly. There is also a chance for more inclusions.

  1. Experience of employees

Experience also counts as an essential aspect of a good CTC. The more knowledge you have, the better CTC you are entitled too.

  1. Designation

The designation of the employee in the workplace also defines the CTC. Not all employees receive the same commissions. So the inclusions will also vary from one designation to another.

  1. Promotion

CTC also improves when you get a promotion and better basic pay. You can also expect better inclusion of other provisions.