Salary & Cost to Company
How Indian salaries are structured — CTC, gross, net, and what it means for your budget.
Salary & Cost to Company — Platform view
What is CTC?
Cost to Company (CTC) is the total amount a company spends on an employee annually. It includes everything — base salary, House Rent Allowance (HRA), special allowances, medical and conveyance reimbursements, and employer contributions like PF (if applicable). When an Indian candidate says "my CTC is ₹20 lakh," they mean the total package, not what they take home each month. The take-home is typically 70–85% of CTC depending on tax declarations and deductions.
Typical CTC breakdown
For a ₹20 lakh CTC (~€22,000/year): Basic Salary is roughly 50% (₹10 lakh), HRA is ~20% (₹4 lakh), Special Allowance covers most of the rest, with smaller components for medical, conveyance, and telephone reimbursements. Professional tax (~₹2,400/year) and TDS (income tax) are deducted from monthly pay.
What you pay vs what they get
As a European employer through our EOR, you see one invoice in EUR each month. We handle the conversion, the CTC structuring, the tax deductions, and the salary disbursement. You budget in EUR, your team gets paid in INR, and the math adds up on both sides.
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