HR Glossary

What is Cost to Company (CTC)?

The total annual expenditure an employer in India incurs on an employee, including base salary, allowances, employer PF/ESI contributions, gratuity, bonuses, and perquisites.

Why it matters in hiring

Cost to Company (CTC) comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with C

• Continuous Performance Management
• Contract Labour Act
• Cost of Living Adjustment (COLA)
• Cost Per Hire
• Cover Letter
• CPF Contribution (Singapore)
• CPP - Canada Pension Plan (Canada)
• Criminal Record Check (Canada)

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.