CTC salary: Cost to company, NETT & gross packages explained

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As an employed individual, there are certain factors that determine your income. Read on for more on what CTC salary means, and what those deductions may be.

Anybody earning an income within the corporate industry is subject to various factors that alter your income. Your CTC salary is not the same income you take home monthly, with factors like any funds or allowances changing the value you take home. We discuss your CTC salary in South Africa and other essential details here.

In comparison, your NETT salary is what you, as an employee, take home monthly after all of the relevant deductions taken by the company and, from your mandated deductions to the perks that companies deduct from your gross salary as part of your cost to the company.The employer usually calculates your total cost to the company, as they have the relevant deduction values that may only be available to the company's accounts department.

Some may be confused about what an all-inclusive salary package means, as it is not described as your cost to the company. However, an all-inclusive salary means it came as your CTC, with all the related deductions and perks.Some job seekers who fall within the income bracket of R15,000 or less frequently search for what their cost to the company could be online. You cannot determine your CTC on income alone, as this can only be calculated by your potential employers.

 

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