On this page, We are going to learn about the full form of CTC in the terms of job and salary and the meaning of CTC, As well as the meaning, definition, and acronym for CTC in different categories. So you should read this post till the end.
The Full Form of CTC: Cost To Company
CTC stands for Cost To Company. A company’s total cost of hiring an employee is called its CTC. CTC also includes many other elements. The basic pay includes House Rent Allowance (HRA), Provident Fund (PF), and Medical Insurance, among others.
In addition to free food, these allowances may include office space rent, cab service, subsidized loans, etc. There is a connection between all of these elements.
In a way, CTC refers to the total cost of the company. CTC can be defined as the expenditures incurred by the company to maintain the services of an employee.
The CTC is considered variable pay since it varies according to various factors. A higher CTC does not necessarily mean a higher monthly salary for the employee
What is CTC in salary for example?
Here is an example that will help us understand CTC. Suppose Mr. XYZ is kept in CTC by ABC company for Rs.2 lakh. Their annual income is shown below with the figures –
Basic Salary: 1,38,250
HRA: 22000
CA: Rs. 12000
Medical Expense: Rs. 8000
EPF Contribution: Rs. 9500
Gratuity: Rs. 6000
Special Allowance: Rs. 4250
Component of CTC
The total cost of the company over an employee is shown as a breakdown. The company’s CTC is made up of almost all the elements mentioned below.
CTC = Direct Benefits + Indirect Benefits + Savings Contributions
| Direct Benefit | Indirect Benefits | Savings Contributions |
|---|---|---|
| Dearness Allowance (DA) | Interest-Free Loans | Superannuation benefits |
| Conveyance Allowance | Food Coupons/Subsidized meals | Employer Provident Fund (EPF) |
| House Rent Allowance (HRA) | Company Leased Accommodation | Gratuity |
| Medical Allowance | Medical and Life Insurance premiums paid by the employer | |
| Leave and Travel Allowance (LTA) | Income Tax Savings | |
| Vehicle Allowance | Office Space Rent | |
| Telephone/ Mobile Phone Allowance | ||
| Incentives or bonuses Special Allowance | ||
| City Compensatory allowance, etc. |
The meaning and full form of CTC
There are some of the most commonly used acronyms, abbreviations, full forms, and CTC meanings are listed in different categories below the table.
| Acronyms | Full Form |
|---|---|
| CTC | Carbon TetraChloride Chemistry |
| CTC | Centralized Traffic Control Governmental |
| CTC | Channel To Channel Computing |
| CTC | Clear To Close Mortgage |
| CTC | Coast To Coast Accounting |
| CTC | Coffee, Tea, and Cakes Food & Nutrition |
| CTC | Combat Training Center Governmental |
| CTC | Common Toxicity Criteria Medical |
| CTC | Community and Technical Colleges Colleges |
| CTC | Community Technology Center Community |
| CTC | Competition Transition Charge Business |
| CTC | Computer Training Centre Computing |
| CTC | Connective Tissue Core Medical |
| CTC | Core Technical Capabilities Governmental |
| CTC | Cost To Company Accounting — and more… |
| CTC | Cut, Tear, Crush Medical |
| CTC | Cyclists Touring Club Sports |
Now you might have got some ideas about the abbreviation, acronym, full form, and meaning of CTC. Also all popular full forms, acronyms, abbreviations, and CTC meanings and definitions.