AHRM Indian Payroll Level 1

Advanced Payroll India

CTC = Direct Benefits + Indirect Benefits + Savings Contribution
Direct Benefits

This refers to the employee’s take-home pay, net wage, or the sum that the employer pays the worker each month and is subject to tax.

Indirect Advantages

These are the benefits that employers do not have to pay for but that employees do. They are added to the employee’s CTC even if the company pays them on their behalf because they are a company expense.

Contribution to Savings

This is the amount that additional benefits, like EPF, add to an employee’s CTC.

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