What is the meaning for CTC?

Furthermore, CTC includes various allowances that are paid to the employee, such as housing or transportation allowances, depending on the company's policies.

Cost to Company (CTC) is a crucial metric in determining the financial burden of employing an individual.

Gratuity, a type of retirement benefit, is also a component of CTC, representing the amount paid to the employee upon their retirement or separation from the company.

This cost encompasses not just the basic salary paid to an employee but also various additional expenses that the company incurs for their benefit.

Lastly, annual bonuses, which are typically awarded based on the employee's performance and the company's financial performance, are also factored into CTC. In summary, CTC represents the total financial obligation of a company towards an employee, encompassing both their basic salary and various additional expenses.