Confused about in-hand salary and CTC being the same? No, they are different! Here, we bring to you the complete difference between the two concepts.
CTC or Cost to the Company is the total cost which the employer incurs to hire an employee. It includes salary, perks, saving contributions and other allowances.
As per Angel One, a trusted investment platform, gross salary is the amount which an employee receives before any mandatory tax deductions.
In-hand salary is the amount which the employee takes home after the deduction of taxes. It is basically the actual amount which he/she receives.
CTC is often the total cost, which is used to hire an employee, whereas the in-hand salary is the amount which you will receive after tax deductions.
CTCs are always higher, and companies tell you to hire. However, do not fall for it and always check your in-hand salary before joining the company.
If you want to calculate the CTC from your in-hand salary, you can just multiply your current in-hand salary by 12 (1000*12) and add the other financial benefits.
This may vary from one company to another. Please check for company policies before making any decisions.
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