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Human Resource Management · Module 6 of 10

Compensation, payroll and benefits

Paying employees correctly and fairly.

📖 Key ideas

  1. CTC (cost to company) is the total yearly cost of an employee, including benefits.
  2. Take-home pay is gross salary minus deductions such as PF, ESI, professional tax and income tax (TDS).
  3. Salary structures include basic pay, HRA, allowances and variable pay.
  4. Payroll calculates pay each month using attendance, leave and deductions.
  5. Pay should be fair inside the company and competitive with the market.
💡 Real-life example: Like a restaurant bill: the menu price (CTC) is not what you take home; taxes and charges change the final amount.
CTCTotal yearly cost of an employee to the company
Take-home paySalary received after deductions
HRAHouse rent allowance
TDSTax deducted at source