1. What is Total Cost To Company?

Total Cost to Company (TCC) represents the complete annual expenditure incurred by a company for an employee. It includes all direct and indirect costs associated with employment in India, covering basic salary, allowances, provident fund contributions, gratuity, and other benefits.

2. How Does the Calculator Work?

The calculator uses the TCC formula:

Where:

• \( Basic \) — Base salary component
• \( HRA \) — House Rent Allowance
• \( Allowances \) — Other allowances (conveyance, medical, etc.)
• \( PF \) — Provident Fund contribution
• \( Gratuity \) — Gratuity amount

Explanation: This formula calculates the comprehensive cost an employer bears for an employee's compensation package in the Indian context.

3. Importance of TCC Calculation

Details: Understanding TCC helps both employers in budgeting and employees in comprehending their complete compensation value. It provides transparency in employment costs and aids in financial planning.

4. Using the Calculator

Tips: Enter all salary components in Indian Rupees (INR). Ensure all values are non-negative. The calculator will sum all components to provide the total cost to company.

5. Frequently Asked Questions (FAQ)

Q1: What is included in TCC?
A: TCC includes basic salary, all allowances, employer's PF contribution, gratuity, bonus, and any other benefits provided by the company.

Q2: How is TCC different from take-home salary?
A: TCC represents the employer's total cost, while take-home salary is what the employee receives after deductions like taxes, employee PF contribution, etc.

Q3: Is PF contribution mandatory in TCC?
A: Yes, employer's PF contribution (typically 12% of basic) is a mandatory component of TCC for organizations covered under the EPF Act.

Q4: How is gratuity calculated in TCC?
A: Gratuity is calculated as (15/26) × last drawn salary × number of years of service, but for TCC purposes, it's often estimated as part of annual cost.

Q5: Are there other components not included here?
A: Yes, components like insurance premiums, variable pay, stock options, and other benefits may also be part of complete TCC calculation.