I HAVE never understood my payslip till date,” says Avni Rustagi, a native of Punjab. Avni, 25, moved to Bangalore four years back in the hope of turning her dream into reality. In that order, she took up work as a designer with an Information Technology firm.
Avni pays Rs 10,000 as rent for a spacious apartment, but ask her about how she manages her other expenses and she throws her hands up in the air. “Numbers scare me,” she admits. “I don’t know a thing about finances.”
She says, “For instance, I don’t even understand my pay structure or CTC as it is called, what I get in hand or why I get that much.”
Wealth realised that Avni’s dilemma is a common problem with most working people. The transformation from CTC to take home leaves mostly everyone confused. Let’s decode and understand what happens when CTC becomes take home.
What is CTC?
CTC is nothing but the cost that the company incurs to employ you and keep you employed. It includes your pay and anything else that the company may incur to keep you in employment. Here is Avni’s CTC or Cost to Company.
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