CTC Full Form

A Complete Overview Of The CTC Full Form

Perhaps most of the employed people are familiar with this abbreviated form and also know the full meaning of it. For the ones who do not know what it is, must know that CTC stands for the complete phrase Cost To Company. In layman's words, this is the salary package offered to an employee per annum. A CTC would include all the expenses per employee that the employer undertakes. Most companies, institutions, schools, and colleges pay their employees on a CTC basis. 

More About CTC

If you are getting hired, then you must know what CTC is. This will cut a clear picture of what amount of salary you will be receiving after the deductions. Plus, you will be aware of what deductions the employer is making and based on what.

  • Do remember that CTC is not the real salary of the employee.

  • CTC is inclusive of the gross salary, incentives, travel allowances, medical facilities, house facilities, and other expenses. 

  • The employer includes other facilities in the CTC.

  • If your company gives you the provision of a car and a driver, then these, along with the oil fare, are included in the CTC.

This reflects that the cash-in-hand might not be an exclusive amount. It might be much lesser than what the CTC is.

The Bases for CTC in an Organization 

  • Educational Qualification

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

  • Previous Salary 

Your present salary also depends on your previous one. There are scarce chances of your salary decreasing when you join a new organization. Therefore, the cost to the company (the ctc full form) will also differ accordingly. There are chances for extra inclusions too. 

  • Employee Experience

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

  • Designation

An employee’s designation at the workplace also defines the CTC. Not all employees will get the same provisions. Thus, the inclusions will also vary from one designation to another. 

  • Promotion

The CTC also improves when you get a promotion and with a better basic salary. You can also expect better inclusions of other provisions. 


It is essential for an employee to know the CTC well. Understanding it completely well before taking up the job will keep matters transparent between the employer and the employee. There are no scopes of a blame-game or cheating. The employer also stands responsible for showing all the aspects included in the salary slip.

FAQ (Frequently Asked Questions)

1. Does the Company Decide the CTC?

The company that you are working for or in will decide your CTC. It is paid according to the company norms and rules which stand pre-decided. So know the meaning of ctc and discuss the inclusions before getting appointed.

2. Does the CTC differ From One Company to Another?

The CTC does differ from one company to another. Since there are no fixed rules amidst the companies, they are free to set the percentage of the inclusions and the basic salary as per their convenience.

3. Why should I Understand all the Terms and Categories of the CTC?

There are many bases on which your CTC is based. This is why you need to understand why you should know all the parts well. You must be aware that what amount you are getting in hand and what is deducted.