What is the difference between CTC and take-home salary?
What is the difference between CTC and take-home salary?
1 Answer
Aicountly Payroll Desk
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CTC (cost to company) is the total amount the employer spends on an employee in a year: salary components plus the employer's contributions such as PF and any other benefits provided. Take-home salary is what actually reaches the employee's bank account each month.
Take-home is lower than CTC because the employer's PF contribution and similar employer-side costs are part of CTC but are not paid out as cash, and because the employee's own PF, TDS on salary and any other deductions are subtracted from the gross pay.
So when comparing offers, look at the monthly breakup of components and deductions, not only the CTC figure.
Aicountly Payroll Desk · 53m ago
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