Unless one is fully familiar with the terms, we often wonder what the terms refers to. Once such term is Cost to Company (CTC)
When a Company/organization calculate the total expenditure they incur for a staff member for a particular year/period they take into consideration not just the salary but also various other components alongwith the salary. By this one will be able to know exactly how much the organization would have to incur on a particular staff. This is called the Cost to Company.
Some components of Cost to Company:
– Fixed Salary
– Retirement Benefits
– Fringe benefits