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
496Generally 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,
plz help me out regarding this crusial matter.
I need to ur suggestion on this matter plz read it….
Imagine that someone selected for the post of HR A.OFFICER, that time he got the call from company Head Office abt the selection process & his salary structure. tht time he was told abt 11000/ PM in probation . but he didn’t get the any mail by company bcoz he was at his native place their has not any facilities of E-NET & FAX services....The Head Office HR Manager told him u can get the office order to the our Plant, & he sent the massage abt the plant location. thn the candidate reached the plant & got the office order was for trainee position & 6500/ salaried.....than he denied for joining & the plant HR manager talk to the Head office & cleared all of things and made him understand that plz join us we will provide new office order as early wht ever we have discussed & we need to ur joining as early , than he denied after tht Ho manager called him and tell tha i m sending mail to for this declaration than he joined. after joining he didn’t get mail by H.O......he keep communication to the H.O as well as plant manager...But they are taking lots off time, now he has completed 3 month of his service in this company...but he has been geting only verbally positive reply....thing is that he has done M.B.A in HR, he s getting 6500/ and one fresher B.A.graduate is geting 8500/..whis is not fair....tahn give me the suggestions what we should do for him bcz seniors are not taking seriously.........plz give me the feedback......
TUSH.......
From India, Delhi
plz help me out regarding this crusial matter.
I need to ur suggestion on this matter plz read it….
Imagine that someone selected for the post of HR A.OFFICER, that time he got the call from company Head Office abt the selection process & his salary structure. tht time he was told abt 11000/ PM in probation . but he didn’t get the any mail by company bcoz he was at his native place their has not any facilities of E-NET & FAX services....The Head Office HR Manager told him u can get the office order to the our Plant, & he sent the massage abt the plant location. thn the candidate reached the plant & got the office order was for trainee position & 6500/ salaried.....than he denied for joining & the plant HR manager talk to the Head office & cleared all of things and made him understand that plz join us we will provide new office order as early wht ever we have discussed & we need to ur joining as early , than he denied after tht Ho manager called him and tell tha i m sending mail to for this declaration than he joined. after joining he didn’t get mail by H.O......he keep communication to the H.O as well as plant manager...But they are taking lots off time, now he has completed 3 month of his service in this company...but he has been geting only verbally positive reply....thing is that he has done M.B.A in HR, he s getting 6500/ and one fresher B.A.graduate is geting 8500/..whis is not fair....tahn give me the suggestions what we should do for him bcz seniors are not taking seriously.........plz give me the feedback......
TUSH.......
From India, Delhi
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Salary Negotiation.pdf