What is CTC (Cost to Company)?
CTC stands for cost to company. It is the total amount an Indian employer spends on you in a year: salary, employer provident fund (PF), gratuity, bonus and benefits. It is not your monthly take-home pay, which is lower because PF, tax and other deductions come out.
An example
A CTC of Rs 12 lakh per annum (12 LPA, where LPA means lakh per annum and one lakh is 1,00,000) is Rs 1,00,000 a month on paper. Under the assumptions in our worked example, the monthly credit is about Rs 88,000. See the full breakdown in CTC vs in-hand salary.
What CTC usually includes
- Basic salary, HRA and allowances
- Employer PF contribution
- Gratuity provision
- Variable pay or bonus
- Insurance and other benefits
What to ask
Ask for a written salary breakup showing fixed and variable pay. CTC is common in India; US offers usually quote gross annual salary instead.
Related terms and guides
Sources
- Income Tax Department, Government of India: https://www.incometax.gov.in (accessed 30 October 2026)
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.