What is CCA (City Compensatory Allowance) in Salary ?
Living in a metro city can be expensive, and that’s where CCA or City Compensatory Allowance comes in. This allowance is added to your salary to help cover higher costs such as rent, transportation, and daily expenses. While it boosts gross pay, it is fully taxable, so it doesn’t always reflect in the take-home salary as expected. Understanding CCA helps employees know why their salary structure includes this allowance, plan personal finances better, and appreciate the compensation adjustments for urban living.