Maximizing Your Earnings: Negotiate Beyond Your Current CTC

September 27, 2023
current ctc

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“What is current CTC?” is one of the first questions asked when you apply for a job. This makes it important to understand the concept of current CTC. Simply put, it is the salary package that a company offers you for your services.

CTC stands for Cost to Company. It is the total amount of money a company spends on an employee. It includes remuneration, compensation and benefits, bonuses, and other perks. Now the question is, “How to mention CTC in a resume?” 

Firstly, it is important to understand whether mentioning CTC is needed. Mostly, people try to evade or give the least information about it. But this might not be helpful. You need to understand the right way to answer to get the salary package you expect.

Mentioning your cost to the company (CTC) in your resume can help you stand out in the job market. It shows that you are transparent and open about your salary expectations. However, it is important to do it in a way that doesn’t put you at a disadvantage during salary negotiations.

In this article, we will provide examples of how to mention your CTC in your resume. Also, let’s look into some tips on answering about current CTC appropriately. Also, this article will share insights on how to answer, “What is your expected CTC?” 

Sample Answer: What is Your Current CTC?

CTC is a comprehensive salary package offered to an employee by an organization. It includes not only the employee’s basic salary. It also includes other benefits such as bonuses, allowances, and contributions to insurance and retirement plans.

CTC is the total amount the company spends on the employee, not the in-hand salary the employee takes home. This makes it important to understand the salary structure. Broadly, gross salary is the amount the employer pays the employee, whereas net salary is the amount the employee receives in a bank account. 

Understanding this is important to understand the current CTC meaning. This also helps during salary negotiation. Once you know the concept, it becomes easiest to answer questions linked to CTC.

To make it easier, here are a few sample answers you can give the employer. 

Sample 1: For Fresher

I have researched and found that a fresher with my experience level can expect a CTC in the range of INR 2.5L to INR 5L per annum in India. This is my first full-time role, but I have worked as an intern. So, I do not have a current CTC as a fresher. 

I am open to discussing a salary package that aligns with my skills and job responsibilities based on my research. I am enthusiastic and believe in my potential to be valuable.

Sample 2: For Experienced Professionals

1) My current CTC is 12L annually. After deductions, my basic salary of 6 lakhs and additional allowances such as HRA, conveyance, and special allowance. I also receive performance incentives of 1-2L PA and benefits such as health insurance, paid time off, and retirement benefits. 

While I am satisfied with my package, I am open to discussing any modifications based on the new job responsibilities. I would be happy to consider the salary range you have in mind for this role and work towards a mutually beneficial agreement.

2) My current CTC is 15L PA, including fixed CTC and variable CTC. The fixed component includes a basic salary of 8 lakhs PA. It includes allowances such as HRA, conveyance, and medical reimbursements. The variable component includes performance incentives which typically range between 2 to 3L PA.

In addition to this, I also receive annual increments based on my performance and the company’s policies. It generally ranges from 12-18% PA. While I am satisfied with my current package, I am open to discussing any adjustments based on the new job responsibilities and the company’s policies.

Though these are just samples, you need to focus on multiple aspects. Knowing the right tips will help you to gain the upper hand during salary negotiations.

Tips to Answer about Current CTC

Answering the current CTC can be tricky. But knowing the tips can help you answer the same better. So, here are a few tips for you.

Tip 1: Understand the Components of your CTC

Your CTC includes various components. Knowing them will help you answer the question better. Some of them are fixed, while others are variable. Your answer should always be based on the fixed CTC only.

The prominent components of your current CTC are as follows:

  • Basic Salary: Fixed amount paid monthly.
  • House Rent Allowance (HRA): Allowance for rented accommodation.
  • Special Allowance: Flexible allowance that can be adjusted.
  • Statutory Bonus: Fixed amount paid annually.
  • Employee Provident Fund (EPF): Contribution made by employer and employee towards a retirement fund.
  • Gratuity: Lump sum payment made by the employer after completing five years of service.
  • Medical Insurance: Insurance coverage for employees and dependents.
  • Leave Travel Allowance (LTA): Reimbursement for travel expenses during leave.
  • Annual Bonus: Variable payment made annually.
  • Stock Options: Option to purchase company stock at a discounted price.

Tip 2: Identify the Fixed and Variable CTC Components

Your CTC is divided into fixed CTC and variable CTC.

Fixed CTC components include the basic salary, PF, and gratuity. These are fixed amounts paid to the employee regardless of performance. The main components under the fixed CTC are:

  • Basic Salary
  • House Rent Allowance
  • Conveyance Allowance
  • Provident Fund (PF)
  • Gratuity
  • Medical Insurance

Variable CTC means components like bonuses, allowances, and other benefits based on the employee’s performance and can vary from year to year. The main components are:

  • Performance Bonus
  • Sales Incentives
  • Variable Dearness Allowance (VDA)
  • Annual Bonus
  • Stock Options
  • Leave Travel Allowance (LTA)

In summary, fixed CTC components are consistent amounts, while variable CTC components are performance-based.

Tip 3: Discuss Your In-hand Salary

In-hand salary refers to the amount the employee receives after all the deductions are made from gross salary. It is essential to clearly understand it as it is the amount you will receive in your bank account.

The fixed components of your salary structure, such as basic salary, provident fund (PF), gratuity, and other allowances, remain constant and form a part of your in-hand salary. On the other hand, variable components, such as bonuses, incentives, and other performance incentives, may vary depending on your performance and target achievements.

When discussing your in-hand salary with the employer, ensure you know all the deductions and are satisfied with the net salary amount you will receive.

Tip 4: Don’t Forget to Mention Your Benefits

Apart from the salary, employees also receive various benefits such as health insurance, life insurance, and other perks. These benefits significantly add to the overall value of the compensation package, and it’s crucial to discuss them during the salary negotiation process.

Discussing these benefits ensures you receive a comprehensive salary structure. It’s also important to consider the monetary value of the benefits, such as the premiums for health insurance and the company’s contribution toward retirement plans. 

Therefore, it’s essential to clearly understand the benefits package to make informed decisions about your compensation package.

Tip 5: Be Aware of Current Salary Trends

It is essential to be aware of the current salary trends in your industry to negotiate your salary package effectively. Research the average salaries offered for your job role and experience level.

You can research salary information through online job boards, salary surveys, and industry associations. You can also network with professionals in your field to get an idea of the going rate for someone with your skills and experience.

Ensure to have realistic expectations during the negotiation process. Knowing the current salary trends can also help you identify the areas where you can negotiate effectively.

Related Read: Most Paid Jobs in India to Start a Successful Career in 2023

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Current CTC and Expected CTC

When you negotiate your expected CTC with recruiters, you might wonder why recruiters ask for current CTC. Recruiters consider this to indicate your skills, experience, and market value. They also use it as a benchmark to determine whether your salary expectations are realistic. 

Here are a few points that will help you understand how recruiters use your current CTC to decide to reach your expected CTC meaning.


It is used as a benchmark to understand your current level of compensation and use that as a starting point for negotiations.


It also helps to understand the affordability of your expected CTC for the organization.

Salary Range

It can support determining the appropriate salary range for your desired position.

Market Value

It is a reference point to determine your market value and whether your expected CTC is realistic and reasonable.


Recruiters use your current CTC as a basis for negotiations and may ask for proof of salary and benefits to support your expectations.

Salary Increment

Recruiters may use it to understand your past salary increments and use that information to decide on the increment to offer you.

Role Fit

It helps to understand the fit of your current compensation package to the role you are applying for. For example, suppose your current package is significantly higher than the new role offers. In that case, it may indicate that you are overqualified or unlikely to be satisfied with the new role.

Company Policy

Recruiters may also consider the company’s salary increments and structure policies. Some companies have fixed salary increments, while others may have a more flexible approach.

Also Read: 30 High-Paying Online Work-from-Home Jobs in India

Current CTC – Time to Answer Tactfully

In conclusion, when asked about your current CTC during a job interview, it is important to answer tactfully. If you are looking for how to mention CTC in your resume, you can avoid mentioning the same.

However, if the interviewer specifically asks for your previous salary, you can provide the information while emphasizing your value and skills about the new role. 

It is also important to remember that the CTC should not be the only factor in considering a new job. You should evaluate the overall benefits, job responsibilities, and growth opportunities. In any case, it is recommended to approach the topic of CTC with transparency and a willingness to negotiate a mutually beneficial package.

Evaluate numerous career choices to choose the right career path for yourself. Dive in to our guide on Career Advice.

Frequently Asked Questions

What is the current CTC?

Current CTC refers to the total amount of money an employee receives from their employer. It includes the details of salary, bonuses, and benefits. It is an important factor in determining an employee’s overall compensation package. 
CTC is usually calculated annually and includes both cash and non-cash components. Non-cash components may include health insurance, paid time off, and retirement benefits. Knowing your current CTC can help you negotiate better compensation. It can help you make informed decisions about your career.

How should a fresher answer to ‘What is your current CTC’?

As a fresher, you may not have a previous salary to disclose. You can politely inform the interviewer that you are a fresher and do not have a current CTC. It’s important, to be honest, and transparent in your response. 
You can also take the opportunity to discuss your salary expectations. Also, you can highlight the qualifications and skills that make you a valuable candidate for the role. This shows your willingness to negotiate and commitment to securing the job based on merit.

How to mention my current CTC in my resume?

It is not recommended to mention your current CTC in your resume. Your resume should focus on your qualifications, skills, and experience relevant to the job you are applying for. Disclosing your current CTC can create extreme bias. It can affect your negotiating power during salary discussions.
Instead, wait until the employer asks about your salary expectations during the interview. This will allow you to discuss your value. Also, it will help you to negotiate a fair compensation package based on the job requirements and market standards.

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