The document discusses the concept of Cost to Company (CTC) salary, which includes an employee's in-hand salary as well as additional costs incurred by the company due to employing that individual. It outlines several components that make up a CTC salary, such as provident fund contributions, reimbursements, insurance premiums, medical/transportation facilities, and subsidized meals. Some companies inflate CTC salaries excessively by including costs like office space rent. Government salaries may seem low but constitute a substantial CTC that includes perks like pension fund contributions and free housing/transportation. HR professionals design pay structures through steps like job analysis, evaluation, pay surveys, and policy development to determine appropriate and competitive compensation.