Personal Finance Not receiving the amount promised in CTC? Here's all you need to know about salary components Updated : June 25, 2019 01:31 PM IST Cost-to-company or CTC is the total salary package an employee receives from the company they work in. It is the total amount of expenses an employer or organisation spends on an employee in a year. The total salary package includes monthly components such as basic pay, various allowances, reimbursements, and annual components including gratuity, annual variable pay, annual bonuses, among others. Normally, CTC is higher than the take-home pay. The difference is due to tax deductions which are not included in the CTC.