If you are new to the job application stuff, then you probably might not know about CTC and In-hand salary. Don't worry I will explain the difference between them very easily.
First look at this image, this has everything you need to know about CTC Vs. In hand salary difference
By seeing the above image, you probably have got an idea of what this all is really about. So, here are the Difference between CTC and In-Hand Package,
1) CTC (Cost to Company)
- In Simple language, It is the amount a company spends on an employee.
- It involves elements like House Rent Allowance (HRA), Provident Fund (PF), and Medical Insurance, and other allowances which are added to the basic salary.
- Basically, all these elements when combined, form the entire Cost to Company CTC.
- In simpler terms, CTC is nothing but a company’s spending on hiring and maintaining the services of an employee.
2) In Hand Salary
- It is also called Net Salary or Take-Home Salary.
- It is the salary which you actually get into your bank account every month, once tax and other such deductions are carried over with.
Hope this Helped you. My only reason to create this Miniblog was to make people new to job applications, aware of this CTC and In-Hand Stuff.
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