CTC stands for Cost to Company—it’s the total amount a company spends annually on an employee. But CTC is not your in-hand salary.
Here’s the breakdown:
CTC = In-hand Salary + Benefits + Deductions
It includes:
- Basic Salary (forms the main part of in-hand)
- House Rent Allowance (HRA)
- Provident Fund (PF) contribution by employer
- Gratuity (if applicable)
- Bonus or performance incentives
- Medical insurance (paid by employer)
- Other perks like meal cards, travel allowance, etc.
Your actual in-hand salary is:
CTC – (PF + taxes + deductions + non-cash benefits)
Example:
If your CTC is ₹6,00,000/year:
- Your monthly CTC = ₹50,000
- After deductions (PF, tax, etc.), you may get ₹38,000–₹42,000 in hand
