A salary breakup structure or a CTC (cost-to-company) breakup structure is the structure in which the CTC is divided into various components to arrive at the in-hand salary of an employee. The CTC, or cost-to-company, is the total salary package that the company offers an employee during recruitment. Having said that, it is essential to note that CTC is never equal to the take-home pay received at the end of the month.CTC is the total amount spent by the company on an employee, whether directly or indirectly. It includes various components like basic pay, provident fund, allowances, etc. Some companies calculate it by adding the employer’s contribution towards PF (Provident Fund) and Gratuity to the gross salary.
