Cost to Company (CTC) Meaning for Net Salary

What does cost to company (CTC) mean?

The abbreviation CTC is often seen next to  the stated salary package (remuneration) for the job opening being advertised. It stands for cost-to-company and simply means that this is the total amount that an employer is prepared to pay for the employee and includes all benefits.

Those that are new to the job market can find this quite misleading and be surprised to find that their net salary is significantly less than the initial remuneration advertised. However, it is a way of the employer stating that this is the only amount available in the budget for the employee and all associated benefits. Some deductions are mandatory while others are optional and many companies are flexible with the way the final package is structured provided that it does not exceed the CTC amount stated at the outset.

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