1. What is CTC?

CTC (Cost to Company) represents the total amount an employer spends on an employee in a year. It includes gross salary plus all non-cash benefits like insurance, perks, and other allowances.

2. How Does the Calculator Work?

The calculator uses the simple CTC formula:

Where:

• Gross Salary — Total salary before any deductions (INR/year)
• Non-Cash Benefits — Value of all additional benefits provided by employer (INR)

3. Importance of CTC Calculation

Details: Understanding CTC helps employees know their complete compensation package and helps employers budget for human resources costs accurately.

4. Using the Calculator

Tips: Enter your annual gross salary in INR and the total value of non-cash benefits. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in non-cash benefits?
A: Health insurance, company car, housing allowance, meal coupons, stock options, and other perks provided by employer.

Q2: Is CTC the same as take-home salary?
A: No, take-home is after deductions (taxes, PF etc.). CTC is the total cost to employer before any deductions.

Q3: Should bonuses be included in gross salary?
A: Yes, all guaranteed bonuses should be included in the gross salary figure.

Q4: How to value non-monetary benefits?
A: Use the market value or the amount the employer spends to provide these benefits.

Q5: Does CTC include employer's PF contribution?
A: Yes, employer's PF contribution is part of the CTC as it's a cost to company.