Cost to Company (CTC) refers to the expense that the company spends on an employee on an yearly basis. It will depend primarily on the salary and other variables. It is primarily calculated by adding the additional benefits given to the employee throughout the year and adding the salary as well. These benefits include everything, additional benefits, gratuity, allowances, food coupons and more.

Formula: Cost of Company = Gross Salary + Benefits Understanding CTC enables employees and employers to assess the total value of employment, improving transparency and planning.