hi friends i want to know that does CTC also includes incentives or any company benefits,
like a employee achieves more target than expected then company used to provide them incentives(usually cash). how does they give them, what are the diff. procedure of giving employees the incentives. does it is shown in monthly Salary Slip, If yes can somebody show me how.
what i know is that
_______________________
Basic
+
HRA
+
TA
+
Other Allowance
+
PF + ESI contributions
=
CTC
________________________
Also can plz also u explain what is ex gratia.
Its urgent frnd do help me with samples if possible.
From India, Bhopal
like a employee achieves more target than expected then company used to provide them incentives(usually cash). how does they give them, what are the diff. procedure of giving employees the incentives. does it is shown in monthly Salary Slip, If yes can somebody show me how.
what i know is that
_______________________
Basic
+
HRA
+
TA
+
Other Allowance
+
PF + ESI contributions
=
CTC
________________________
Also can plz also u explain what is ex gratia.
Its urgent frnd do help me with samples if possible.
From India, Bhopal
Hi Nitin,
Generally the Incentives are not part of CTC.. it is paid separately after achievement of targets..
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
TA
Other Allowance
Mobile Reimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope now it will be very much clear to you,
if you have any query feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
496Generally the Incentives are not part of CTC.. it is paid separately after achievement of targets..
The contents of the salary break up is as below, you can prepare it at the suitability of your own. HRA would be 50 or 60% of basic.
Basic
HRA
TA
Other Allowance
Mobile Reimbursement / Month
Gross Per Month = Sum of all the above.
Gross Per Annum= 12*Gross/Month
PF Contribution= 12% of Basic/Annum
ESI Contribution = 4.75% of Gross/Annum
Medical = The mediclaim facility provided to an employee who are not covered under ESI as the maximum ceiling for ESI is 10000/Month.
Getting more than this will be covered under Mediclaim or it depends on company policy
EX-Gratia/Bonus = A fixed amount as Bonus
Annual Fixed Gross Cost= Gross/Annum+ Ex-gratia
Annual Total Cost = AFGC + PF+ESIC
Annual total cost is also called as CTC.
Hope now it will be very much clear to you,
if you have any query feel free to ask.
Regards,
Amit Seth.
From India, Ahmadabad
amit sir,
thanks again for yur reply.
Sir can u plz explain to me , the terms Fixed CTC and Variable CTC.
and there components.
i f i had to offer a employee in sales this type of CTC and if like 2.25 lacs is its fixed CTC and 1.75 is its variable.
what does it mean.
Thanks
waiting for yur reply.
From India, Bhopal
thanks again for yur reply.
Sir can u plz explain to me , the terms Fixed CTC and Variable CTC.
and there components.
i f i had to offer a employee in sales this type of CTC and if like 2.25 lacs is its fixed CTC and 1.75 is its variable.
what does it mean.
Thanks
waiting for yur reply.
From India, Bhopal
Dear Nitin,
To be very honest,CTC is one thing where in you can add whatever you want to. For example even in the case of incentives also you can say that on an average one employee gets so and so amount of incentive.
There is a famous funny incident regarding CTC : There is an organisation in Mumbai which was offering CTC to Management Trainees where in rent being paid for the Cubicle was included. Logic: Nariman Point is the costliest place in India and MT who gets selected is going to occupy the costliest cubicle.
Isn't it funny? So CTC,god help people for disguising the salary part so well.
Satyesh
From India, Raurkela
To be very honest,CTC is one thing where in you can add whatever you want to. For example even in the case of incentives also you can say that on an average one employee gets so and so amount of incentive.
There is a famous funny incident regarding CTC : There is an organisation in Mumbai which was offering CTC to Management Trainees where in rent being paid for the Cubicle was included. Logic: Nariman Point is the costliest place in India and MT who gets selected is going to occupy the costliest cubicle.
Isn't it funny? So CTC,god help people for disguising the salary part so well.
Satyesh
From India, Raurkela
Hi Nitin,
Most welcome..
Its all mine pleasure that it helped you to prepare the same..
See.. the difference is that a Variable CTC has the component which is variable, like if you add incentive in CTC then definitely it will be an example of Variable CTC, because incentives may vary from month to month..
Whereas, the CTC which has all the fixed contents or components will be an example of Fixed CTC...
Regards,
Amit Seth.
From India, Ahmadabad
Most welcome..
Its all mine pleasure that it helped you to prepare the same..
See.. the difference is that a Variable CTC has the component which is variable, like if you add incentive in CTC then definitely it will be an example of Variable CTC, because incentives may vary from month to month..
Whereas, the CTC which has all the fixed contents or components will be an example of Fixed CTC...
Regards,
Amit Seth.
From India, Ahmadabad
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 Calculator.xls
Company Profile.ppt