Salaries are payments that are made/given by different firms or companies to their workers in exchange for the services rendered.
Simply said, the compensation structure is the specific structure of the salary that is being provided. It is therefore broken down into segments such as CTC, basic salary, then allowances, insurances, and so on.
CTC is the abbreviation of Cost of Company. It is the entire amount spent on an employee by a corporation. It also involves a wide bracket of the pay package that an employee is offered. The amount which is transferred to his/her bank is not the CTC.
Basic Salary: Bonuses, as well as incentives, are not included in the basic wage.
Allowances. It is a sum of money given by an employer to their workers in terms of meeting service criteria. HRA (House Rent Allowance), Medical, and other allowances are the most popular.
A bonus is a payment provided to an individual in exchange for outstanding service or productivity.
The Provident Fund (PF) is a system that is beneficial after a worker retires. All salaried employees are covered by this investment strategy.