Dear Colleagues,
Whenever we negotiate salary for a new position, should negotiation be done component wise ( Basic, HRA, Medical etc. ) or it should be done directly on gross or CTC ?
kINDLY GUIDE
Thanks
Whenever we negotiate salary for a new position, should negotiation be done component wise ( Basic, HRA, Medical etc. ) or it should be done directly on gross or CTC ?
kINDLY GUIDE
Thanks
Hi..
Generally its been done on CTC.. but sometimes its been done on take home salary or Gross also..
Candidates do ask that they need this much amount as take home salary, so we use to prepare salary accordingly..
But CTC negotiation is the most in application these days..
Regards,
Amit Seth.
From India, Ahmadabad
508Generally its been done on CTC.. but sometimes its been done on take home salary or Gross also..
Candidates do ask that they need this much amount as take home salary, so we use to prepare salary accordingly..
But CTC negotiation is the most in application these days..
Regards,
Amit Seth.
From India, Ahmadabad
I am new to this Site. I would like to know what is the full form of CTC as this is not the terminology used in UAE. Isak Job Analyst +971505458619
Hi,
CTC stands for "Cost to the Company".
This is calculated taking into account all the expenses beared by the company towards an emloyee like Employer contribution to PF, Gratuity, Medical Insurance etc.
In India the salary has majorly two parts one is Gross Salary ie payable to the employee directly can be Fixed or variable component. Major components of this comprise of Basic,HRA,Conveyance, Food Allowances, Performanace Allowances, Incentives linked to performance or company's performance. The other part consistes of all expenses that the employer incurs for the welfare of the employee (mentioned above, like PF,gratuity etc).
Example is mentioned below:
Basic : 120000
HRA : 96000
Conveyance : 9600
Employee contribution to PF : 12000
Medical Reimbursement : 15000
=====================================
Fixed Gross : 252600
=====================================
Performance Bonus : 18000
=====================================
Total Gross Salary : 270600
=====================================
Gratuity : 57600
Employer contribution to PF : 12000
LTA : 30000
Medical Insurance : 20000
=====================================
Cost to the Company (CTC) : 390200
=====================================
NOTE: All the numbers used above are just approximation, just to explain the logic.
Thanks,
Neeti
From India, Mumbai
CTC stands for "Cost to the Company".
This is calculated taking into account all the expenses beared by the company towards an emloyee like Employer contribution to PF, Gratuity, Medical Insurance etc.
In India the salary has majorly two parts one is Gross Salary ie payable to the employee directly can be Fixed or variable component. Major components of this comprise of Basic,HRA,Conveyance, Food Allowances, Performanace Allowances, Incentives linked to performance or company's performance. The other part consistes of all expenses that the employer incurs for the welfare of the employee (mentioned above, like PF,gratuity etc).
Example is mentioned below:
Basic : 120000
HRA : 96000
Conveyance : 9600
Employee contribution to PF : 12000
Medical Reimbursement : 15000
=====================================
Fixed Gross : 252600
=====================================
Performance Bonus : 18000
=====================================
Total Gross Salary : 270600
=====================================
Gratuity : 57600
Employer contribution to PF : 12000
LTA : 30000
Medical Insurance : 20000
=====================================
Cost to the Company (CTC) : 390200
=====================================
NOTE: All the numbers used above are just approximation, just to explain the logic.
Thanks,
Neeti
From India, Mumbai
Hi,
Please help me out regarding this crucial matter.
I need your suggestion on this matter. Please read it.
Imagine that someone is selected for the post of HR Officer. At that time, he received a call from the company's Head Office about the selection process and his salary structure. He was informed about a salary of 11000/- per month during the probation period. However, he did not receive any email from the company as he was at his native place where there are no facilities for internet or fax services. The Head Office HR Manager instructed him to collect the office order from our Plant, and he also sent details about the plant location.
When the candidate reached the plant, he found that the office order was for a trainee position with a salary of 6500/-. Consequently, he declined to join. The Plant HR Manager contacted the Head Office and clarified the situation, assuring the candidate that a new office order aligned with the initial discussions would be provided promptly. They emphasized the need for his early joining. Eventually, after further communication and insistence from the Head Office Manager, the candidate agreed to join without receiving any email confirmation.
After joining, he did not receive any emails from the Head Office. Despite his efforts to communicate with both the Head Office and the Plant Manager, responses have been delayed. Now, after completing three months of service in the company, he has only received positive verbal assurances. The concern is that despite holding an MBA in HR, he is receiving a salary of 6500/-, whereas a fresh BA graduate is earning 8500/-. This discrepancy is unfair.
Please provide suggestions on what course of action should be taken for him, as the seniors are not taking the situation seriously. Your feedback is appreciated.
Thank you,
TUSH
From India, Delhi
Please help me out regarding this crucial matter.
I need your suggestion on this matter. Please read it.
Imagine that someone is selected for the post of HR Officer. At that time, he received a call from the company's Head Office about the selection process and his salary structure. He was informed about a salary of 11000/- per month during the probation period. However, he did not receive any email from the company as he was at his native place where there are no facilities for internet or fax services. The Head Office HR Manager instructed him to collect the office order from our Plant, and he also sent details about the plant location.
When the candidate reached the plant, he found that the office order was for a trainee position with a salary of 6500/-. Consequently, he declined to join. The Plant HR Manager contacted the Head Office and clarified the situation, assuring the candidate that a new office order aligned with the initial discussions would be provided promptly. They emphasized the need for his early joining. Eventually, after further communication and insistence from the Head Office Manager, the candidate agreed to join without receiving any email confirmation.
After joining, he did not receive any emails from the Head Office. Despite his efforts to communicate with both the Head Office and the Plant Manager, responses have been delayed. Now, after completing three months of service in the company, he has only received positive verbal assurances. The concern is that despite holding an MBA in HR, he is receiving a salary of 6500/-, whereas a fresh BA graduate is earning 8500/-. This discrepancy is unfair.
Please provide suggestions on what course of action should be taken for him, as the seniors are not taking the situation seriously. Your feedback is appreciated.
Thank you,
TUSH
From India, Delhi
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