The document discusses the concept of cost to company (CTC). CTC refers to the total cost incurred by a company towards an employee's salary and various other benefits. It includes cash components like basic salary, allowances, bonuses as well as non-cash benefits like PF contributions, medical insurance, leave encashment etc. While CTC provides the total expense for the company, the take-home salary is lower than CTC after deductions like taxes. CTC allows companies to show an inflated salary figure to attract candidates while the actual take-home amount is significantly less.