CTC–  CTC stands for “Cost To Company”. It basically comprises all expenses that the company bears for having you as an employee. So, apart from Salary, other things that it includes are PF, Professional Tax, Other Deductions (varying from company to company and also depending on what services you may be claiming from them, like Cab, Lunch Coupons, etc.).

CTC Component- CTC includes the following.

  1. Fixed Component
    • House Rent Allowance
    • Conveyance
    • Special Allowance
    • Medical Allowance
    • Leave Travel Allowance
    • Other allowances
  2. Retirement Benefit
    • Gratuity
    • PF Contribution of Employer
  3. Variable Component
    • PLI (Performance Linked Incentive)
    • Bonus
  4. Other Benefits
    • Cab Facilities
    • Lunch Facilities
    • Car and Driver
    • Rent Free or Company Lease Accommodation
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