Can we add LTA in CTC as a deduction?
As we are a C to H IT company, our margins are very low, and to increase margins, clients are requesting more deductions to be shown in the CTC. Can someone suggest what deductions we can include in the CTC?
From India, Bengaluru
Acknowledge(0)
Amend(0)
As we are a C to H IT company, our margins are very low, and to increase margins, clients are requesting more deductions to be shown in the CTC. Can someone suggest what deductions we can include in the CTC?
From India, Bengaluru
Acknowledge(0)Amend(0)
How is LTA a deduction? Rather, it is an addition to the salary offered. I think you have no basic idea about salary, remuneration, or compensation. If the objective is CTC, how can the clients insist on showing more deductions in CTC? If your ideology is to show as many allowances as possible in the compensation as Cost To Company, you should be betraying your employees. If an employee accepts the offer believing that the allowances shown in the CTC are amounts due to him, and later on you say that these are payable based on some conditions, he will get frustrated. That frustration will be reflected in his deliverables. Ultimately, he will resign and go. This will only add cost to the company. At the same time, if you offer a remuneration that will be actually paid in real terms, there will be transparency, and that will make the employees confident. Obviously, the latter group of employees will be far better than the former. Therefore, ask the clients what they expect from CTC?
From India, Kannur
Acknowledge(0)Amend(0)
4768From India, Kannur
Acknowledge(0)Amend(0)
You can add LTA in CTC as a component but can't do the deduction. You may be XYZ Co, it doesn't matter a lot to the laws because you can't engage in unethical practices. You can increase your profit margins by reducing overhead expenses and other nonproductive expenditures.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
LTA = Leave Travel Allowance. It is a benefit for employees payable in cash or as reimbursement if the scheme permits (as in the case of government and quasi-government establishments). Firstly, employees avail themselves by spending and then claim reimbursement, once in a block of year(s), for self and family. There are no deductions like EPF involved in this.
In enhancing profit and profitability, there can be many factors that corporate management must seriously consider. I don't think there is room for your clients to insist on any aspect in this regard. Perhaps, during casual or personal discussions, they may have suggested some ideas that need to be considered in the right perspective.
From India, Bangalore
Acknowledge(0)Amend(0)
In enhancing profit and profitability, there can be many factors that corporate management must seriously consider. I don't think there is room for your clients to insist on any aspect in this regard. Perhaps, during casual or personal discussions, they may have suggested some ideas that need to be considered in the right perspective.
From India, Bangalore
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
ADD.jpg
LTA (REDIFF).doc