Dear members,
Please let me know if we can include the 30 paid leaves to be availed by the employee into the CTC. That means if somebody is entitled to be paid Rs. 8 lakh per annum and he takes any leave during the month, it will be deducted from his salary.
From India, Kolkata
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Please let me know if we can include the 30 paid leaves to be availed by the employee into the CTC. That means if somebody is entitled to be paid Rs. 8 lakh per annum and he takes any leave during the month, it will be deducted from his salary.
From India, Kolkata
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Sure. You can. But make sure you pay double salary for hours worked anything above 8hrs each day and double salary for working on local holidays/weekends.
From India, Chennai
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60From India, Chennai
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Dear friend,
Leave, including its types and scales, is a benefit available to paid employees as per any labor law applicable or service regulations or the contract of employment. If so, how can the employer deduct the employee's salary proportionately against the leave taken? Except for earned leave, all other types of leave lapse within the calendar year itself. Earned leave alone can be accumulated to a certain limit and surrendered for cash benefits. Therefore, since surrendered leave is an additional cost incurred by the employer, it can be added to the CTC.
From India, Salem
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Leave, including its types and scales, is a benefit available to paid employees as per any labor law applicable or service regulations or the contract of employment. If so, how can the employer deduct the employee's salary proportionately against the leave taken? Except for earned leave, all other types of leave lapse within the calendar year itself. Earned leave alone can be accumulated to a certain limit and surrendered for cash benefits. Therefore, since surrendered leave is an additional cost incurred by the employer, it can be added to the CTC.
From India, Salem
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Hi,
You cannot follow this practice. Leave is a legal right given to the employee to avail the benefit of it. If you follow this practice, that means you are not allowing employees to go and avail their rights. Leaves should be over and above your CTC.
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You cannot follow this practice. Leave is a legal right given to the employee to avail the benefit of it. If you follow this practice, that means you are not allowing employees to go and avail their rights. Leaves should be over and above your CTC.
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Dear Colleague,
You have raised a debatable query about whether the cost equivalent to 30 days of authorized leave (payment for non-working days) should be part of CTC.
If you look at it from the employer's point of view, everything that is spent on the employee is a cost to the company. For example, subsidized/free food expenses, free transport, and all welfare-related expenses. However, traditionally and for various reasons, not everything is counted in CTC, and cost items related to welfare expenses, including the cost of leaves, are typically excluded from the reckoning. The question here is not about what is right or wrong but rather about what is predominantly being practiced currently, which may potentially change in the future.
Therefore, including the cost incurred for 30 days of leave is not in line with the current widespread industry practice.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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You have raised a debatable query about whether the cost equivalent to 30 days of authorized leave (payment for non-working days) should be part of CTC.
If you look at it from the employer's point of view, everything that is spent on the employee is a cost to the company. For example, subsidized/free food expenses, free transport, and all welfare-related expenses. However, traditionally and for various reasons, not everything is counted in CTC, and cost items related to welfare expenses, including the cost of leaves, are typically excluded from the reckoning. The question here is not about what is right or wrong but rather about what is predominantly being practiced currently, which may potentially change in the future.
Therefore, including the cost incurred for 30 days of leave is not in line with the current widespread industry practice.
Regards,
Vinayak Nagarkar
HR Consultant
From India, Mumbai
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Dear Friend,
As per Umakanthan.M, "Since the surrender leave is the additional cost incurred by the employer, it can be added to the CTC."
As the question is raised for paid leaves, if an employee wants to avail all leaves provided by the company and does not want to surrender any leave, then in this case, by adding Leave Encashment in CTC, are we not making it compulsory for employees not to avail leave as this will result in lower take-home salary for the employee?
Nowadays, most companies are discouraging Leave Encashment. They are even encouraging their employees to utilize their outstanding leave to fulfill family/social responsibilities. This approach will create a good working atmosphere and help the employer obtain maximum output from the workforce.
In this matter, the option should be left with the employee whether they want to avail leave or choose Leave Encashment. Any types of leaves should not be a part of CTC; they should be considered over and above the CTC.
Regardless, leave is a legal right of the employee, and by incorporating it into CTC, we may inadvertently promote a Bonded Labour Culture.
From India, Bagholi
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As per Umakanthan.M, "Since the surrender leave is the additional cost incurred by the employer, it can be added to the CTC."
As the question is raised for paid leaves, if an employee wants to avail all leaves provided by the company and does not want to surrender any leave, then in this case, by adding Leave Encashment in CTC, are we not making it compulsory for employees not to avail leave as this will result in lower take-home salary for the employee?
Nowadays, most companies are discouraging Leave Encashment. They are even encouraging their employees to utilize their outstanding leave to fulfill family/social responsibilities. This approach will create a good working atmosphere and help the employer obtain maximum output from the workforce.
In this matter, the option should be left with the employee whether they want to avail leave or choose Leave Encashment. Any types of leaves should not be a part of CTC; they should be considered over and above the CTC.
Regardless, leave is a legal right of the employee, and by incorporating it into CTC, we may inadvertently promote a Bonded Labour Culture.
From India, Bagholi
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