Is variable pay part of CTC

The cost to company package, or CTC, comprises all the payments and benefits, whether fixed or variable, that you are entitled to , while the take-home pay is what you get after all the mandatory deductions.

How is it Calculated? Variable compensation as a percentage of total compensation is calculated by adding up all variable compensation and dividing that sum by total compensation .

This could mean the variable pay will be raised to 50-55 percent of the CTC in 2020. At present, it constitutes 40-45 percent of the CTC for top management while it is between 25-30 percent for the junior staff.