Cost-to-Company (CTC) and Statutory Compliance👇 CTC – a term which has replaced wages/salary. Is it statutorily right? Wages or Salary is a periodic payment received by a person engaged to perform specific job in an organization. As per section 3 of Payment of Wages Act, 1936, every employer shall be responsible for the payment of all wages reported to be paid under this Act to persons employed by him and in case of persons employed in Factories, Industrial or other establishments, etc. While engaging a new resource or while fixing new compensation upon increment or promotion for an existing employee, the establishment need to compute the cost involved in engagement of such resource and the term used to denote the monetary spend by the establishment is called as CTC. Different terms and appropriate definition • Cost-to-Company is total money to be spend on engagement of such resource, during a year. • Gross is the amount an employee receives as a salary before any deductions. • ...
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