Cost to company (CTC) is a term for the total salary package of an employee, used in countries such as India and South Africa.
It is calculated by adding salary to the cost of all additional benefits an employee receives during the service period.
[1][2] CTC can include many elements in addition to salary/wages, such as healthcare, pension, and allowances for housing, travel and entertainment.
The term CTC is used by companies to more accurately reflect the incremental spend per employee (the concept of direct costs) from the perspective of an organisation.
Indirect costs such as facilities, support services, and utilities would still be incurred regardless of a headcount reduction of one — thus, CTC does not include any component that can not be attributed directly to the employee specifically.