CTC And Take Home Salaries

The early days of your business are likely to be pretty lean ones money-wise.At the time,if you get discouraged by all the great salaries your contemporaries are raking in and are thinking of giving up,find out if people around you are talking of CTC or take home salaries.Then consider how much they keep post-tax,and then compare it with what you manage to keep for yourself and then decide.

CTC or cost to company is what a company spends on an employee. If something is an “Expense” for a company because of an employee, its part of his/her CTC,

So,companies often add their contribution to the EPF,gratuity(which is payable 5 years from the date of joining),superannuation,leave encashments etc. to the CTC. If employees leave the company after a short while they may never see these incomes. Read more of this post