Hello, Connections! In a CTC structure, I am putting a Bonus as a provision as per the bonus act but at the time of bonus calculation, we are considering working days. Now the added bonus part in CTC does not match the calculated bonus. Any solution pls?
Nothing in the CTC portion which is mentioned under the Gross Salary portion will be actual. Take the case of EPF contribution which is shown as part of CTC below the Gross salary level. This is the employer's share on the salary mentioned above the line at the time of offer letter or revision letter, as the case may be. It will vary if the employee takes a few days' leave without pay. Again, some companies mention gratuity as part of CTC which is no way related to actual figure. What is assumed is that this would be the PF payable by the employer in respect of the employee concerned if he works for all the days and thereby the salary remains the same. In the similar way, if you show bonus as part of CTC, it only means that with a salary given (above) he would get the bonus as mentioned and obviously, if he takes a few days' leave without pay, his salary would be less and proportionate reduction will be there in Bonus also. That is not an issue and cannot be fixed.
From India, Kannur
4249From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
CTC CALCULATION SHEET.xls