Cost to Company (CTC) is a term used to describe an investment without return. Travel expenditures, interviewing, spending time with potential customers can all be interpreted as CTC's.
Cost to Company can also be used to refer to the total cost that an organization is spending towards their employee including the Salary, Perks, Cost related to benefits, Cost related to hiring, Training, Retirals, Statutory Contributions etc.
Here is more input:
* Cost to Company is a buzz word to describe how the company can slowly pay you less and less, and remove all your benefits, until you are "self funded" - in other words you pay for all your "benefits" yourself, while the company receives the tax benefits for these payments. This improves their profit ratio, and if this system is extrapolated, you will eventually pay the company to work there. So you'll need a second job to fund this. :-)
* CTC - Cost to company is a trick of a company and HR department, to show we are paying a big salary, but unfortunatly it is just bubble. They overload total expences of human resorces on salary, and show that they are paying this much salary to the staff. but actualy they pay less and show more. For example....your salary is 6.00 Lacs p.a. Means ... you are getting 50,000/- per month. But actuly person gets only 25,000/- per month...all other money is deducted for facilities.. Means we are paying for getting facilities, but company shows they are giving us good facilities in the organization. In short, we pay from our salary for getting facilities, but company says they are giving good facilities to there staff. So you are paying for even unwanted facilities which you dont need. Before deciding CTS ask for breakup of facilities.
A salary is a form of periodic payment from an employer to an employee, which is specified in an employment contract.
From the point of view of running a business, salary can also be viewed as the cost of acquiring human resources for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts.
Salary is sometimes called "base pay" to distinguish it from other types of cash pay. Based on their actions in a job, employees may also receive overtime pay, incentive pay, bonuses, or commissions. Some benefits, such as relocation per diems and disability insurance premiums may also have a taxable cash value. The sum of all money promised and paid in a given period is termed the Gross Pay for that period by payroll processors, but may be referred to as Total Cash Compensation by compensation analysts.
 Salary and Inflation/Deflation
At a micro level, taxable salary increases and Cost-of-living indexes must exceed the stated inflation rate to maintain purchasing power as most salary increases are subject to taxation (at the highest marginal tax rate). In other words, cost and consequently, CPI is aftertax and salary adjustments are before tax.
However, inflation rates are usually based on broad geographic cost aggregates thus only indrectly reflecting local changes in costs.
Answered By: swati - 1/17/2007