Payroll
CTCCost to Company
CTC is the total amount a company spends on an employee in a year, including salary, employer contributions and benefits, not what the employee receives in hand.
Cost to Company adds up everything an employer pays because a person is on the rolls: basic pay, allowances, the employer share of PF and ESI, gratuity provision, insurance premiums and any bonus or variable pay. It is the number in the offer letter and the number finance budgets against.
It is not take-home. Deductions such as the employee share of PF, professional tax and TDS come out of the gross that CTC contains, and employer contributions never reach the employee as cash.
In Indian payroll
Indian offers are almost always quoted as annual CTC, which is why a ₹6 lakh offer lands as roughly ₹42,000 a month in the bank. Explaining the gap is the most common conversation HR has with a new joiner.
What is CTC?
CTC is the total amount a company spends on an employee in a year, including salary, employer contributions and benefits, not what the employee receives in hand.
Why does CTC matter in Indian payroll?
Indian offers are almost always quoted as annual CTC, which is why a ₹6 lakh offer lands as roughly ₹42,000 a month in the bank. Explaining the gap is the most common conversation HR has with a new joiner.
In Kuzhu
The Payroll module in Kuzhu is where CTC is handled, on the same employee record as everything else.
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