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Free report template · Word

Cost to Company Statement

A cost to company statement is an annual report issued to an existing employee showing what the employer actually spent on them during a financial year, including salary paid, statutory contributions, insurance premiums and bonuses. It helps employees see their total rewards beyond the monthly payslip.

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[Company Logo][Company Name]

ANNUAL COST TO COMPANY STATEMENT

Ref. No.:
[Reference Number]
Date:
[Date]
Financial Year:
[FY YYYY-YY]
Employee Name:
[Employee Name]
Employee ID:
[Employee ID]
Designation / Department:
[Designation] / [Department]
Date of Joining:
[Date of Joining]
UAN:
[UAN]

Dear [Employee Name],
This statement summarises the total amount [Company Name] invested in your employment during the financial year [FY YYYY-YY]. It includes cash salary as well as contributions and benefits that do not appear in your monthly in-hand pay.

Part A – Salary Paid

ComponentApproved Annual (₹)Actual Paid (₹)
Basic Salary[Amount][Amount]
House Rent Allowance[Amount][Amount]
Special Allowance[Amount][Amount]
Other Allowances[Amount][Amount]
Bonus / Incentives Paid[Amount][Amount]
Arrears Paid[Amount][Amount]
Total Salary Paid (A)[Amount][Amount]

Part B – Employer Statutory Contributions

ComponentApproved Annual (₹)Actual (₹)
Employer PF (EPF + EPS)[Amount][Amount]
Employer ESI (if covered)[Amount][Amount]
Gratuity Provision[Amount][Amount]
Labour Welfare Fund (employer share, if applicable)[Amount][Amount]
Total Contributions (B)[Amount][Amount]

Part C – Benefits Funded by the Company

BenefitCoverageCost to Company (₹)
Group Medical Insurance[Self / Family][Amount]
Group Term Life / Personal Accident[Sum Assured][Amount]
Training and Certification[Programme Name][Amount]
Total Benefits (C)[Amount]

Summary

ParticularsAmount (₹)
Total Actual Cost to Company (A + B + C)[Amount]
Approved Annual CTC[CTC]
Remarks on variance[e.g. joined mid-year / leave without pay / revision effective DD/MM/YYYY]

Gratuity is shown as a provision and becomes payable only on meeting eligibility under applicable law. Tax deducted at source during the year is reported separately in Form 16. For any query on this statement, please write to [HR Email].

For [Company Name]
[Authorised Signatory]
[Designation]
(Company Seal)

What this template includes

  • Financial year and period of service covered
  • Actual salary paid (not offered) for each component
  • Employer PF, ESI and gratuity contributions for the year
  • Insurance premiums paid on the employee's behalf
  • Bonus, incentives and arrears actually paid
  • Total actual cost compared with the approved CTC
  • Authorised signature with company seal

When to use it

  • At the end of a financial year as a total-rewards communication
  • Before the appraisal cycle so employees see their full current cost
  • When an employee needs a CTC proof for a visa, loan or new employer
  • When finance needs per-employee cost for budgeting or cross-charging

How to customise this template

  1. 1Pull actual paid figures from payroll for April to March or the service period
  2. 2Add rows for any benefit you fund, such as meal cards, NPS employer contribution or training
  3. 3Pro-rate figures for employees who joined mid-year
  4. 4Add a remarks line where actual differs from approved CTC (e.g. leave without pay)
  5. 5Print on letterhead and sign before issuing

HR tips

  • Use actual paid numbers, not offer-letter numbers, so the statement reconciles with Form 16
  • Explain gratuity as a provision, not a cash payment
  • Issue it in a simple, readable layout; employees often share it with banks
  • Keep a signed copy in the personnel file

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Frequently asked questions

Is a CTC statement the same as Form 16?+

No. Form 16 is the TDS certificate under income tax law. A CTC statement is a voluntary employer document showing total employment cost, including items that are not taxable salary.

Why can the actual cost differ from my offered CTC?+

Leave without pay, mid-year joining, unpaid variable pay or a revision during the year can make actual cost differ from the approved CTC. The statement should note these reasons.

Can I use a CTC statement for a home loan?+

Banks usually ask for payslips, Form 16 and a salary certificate, but some accept a signed CTC statement as supporting proof. Check with the lender.