1. What Is Cost To Company?

Cost To Company (CTC) represents the total amount of money an employer spends on an employee in a year. This includes basic salary, benefits, and statutory contributions like UIF and SDL in the South African context.

2. How Does The Calculator Work?

The calculator uses the CTC formula:

Where:

• \( Basic \) — Basic salary amount (ZAR)
• \( Benefits \) — Additional benefits and allowances (ZAR)
• \( UIF \) — Unemployment Insurance Fund contribution (1% of basic)
• \( SDL \) — Skills Development Levy contribution (1% of basic)

Explanation: The calculation includes both direct compensation (basic salary) and indirect costs (statutory contributions) to determine the true cost of employment.

3. Importance Of CTC Calculation

Details: Understanding CTC helps employers budget accurately and employees understand their total compensation package beyond just take-home pay.

4. Using The Calculator

Tips: Enter basic salary and benefits in ZAR. The calculator automatically computes UIF and SDL contributions at 1% each of the basic salary.

5. Frequently Asked Questions (FAQ)

Q1: What is included in CTC?
A: CTC includes basic salary, allowances, bonuses, provident fund contributions, medical aid, and statutory contributions like UIF and SDL.

Q2: What is UIF and who pays it?
A: UIF (Unemployment Insurance Fund) provides short-term relief to workers when they become unemployed. Both employer and employee contribute 1% each of the basic salary.

Q3: What is SDL and who pays it?
A: SDL (Skills Development Levy) funds education and training initiatives. Employers pay 1% of total remuneration to the SETA.

Q4: Is CTC the same as take-home pay?
A: No, CTC is the total cost to employer. Take-home pay is CTC minus deductions like PAYE, UIF, pension, etc.

Q5: Are there other statutory contributions?
A: Yes, depending on the company size and industry, there may be additional levies like Compensation Fund contributions.