Have you ever thought about what CTC is? CTC is a widely used term, but we are sure very few will be aware of its exact meaning and components. This blog explains the use and importance of CTC.
The whole sum of money that a business spends on an employee, including salary, fringe benefits, and any other costs incurred on their behalf, is known as the "cost to company" (CTC).
Now the question comes, what is CTC consists of and why is it so important? CTC is the budget for an employee. CTC includes benefits like health insurance, retirement benefits, and other perks too along with the employee's base income and any bonuses, incentives, or allowances.
The CTC is crucial because it provides a clear idea of the overall cost of the job to both the employer and the employee. Additionally, it aids the business in planning and budgeting the expenses related to recruiting and retaining staff. Additionally, it develops a sense of responsibility in an employee.
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