Hi Narasimman,
As far as I know there is no hard and fast rule for CTC calculation except the salary components being included.
We at our organisation do not include the bonus and the variable pay (based on performance) under CTC.
We calculate them over and above CTC and refer to it as gross salary.
Hence its up to you how you want it to be to attract and reatin employees.
In surveys employees do not see it as very welcome when his CTC is quoted is a big sum but what he gets in his bank evry month is a meagre amount...hence its not a good policy to include everything in CTC.
If one wants to calculate the CTC for billing purpose then u need to include all that u incur on an employee which will also include the expenses incurred on his traings.
Thanks
Shailly Purohit
From India, Delhi
1As far as I know there is no hard and fast rule for CTC calculation except the salary components being included.
We at our organisation do not include the bonus and the variable pay (based on performance) under CTC.
We calculate them over and above CTC and refer to it as gross salary.
Hence its up to you how you want it to be to attract and reatin employees.
In surveys employees do not see it as very welcome when his CTC is quoted is a big sum but what he gets in his bank evry month is a meagre amount...hence its not a good policy to include everything in CTC.
If one wants to calculate the CTC for billing purpose then u need to include all that u incur on an employee which will also include the expenses incurred on his traings.
Thanks
Shailly Purohit
From India, Delhi
Cost to Company is the cost of employing a resource. What ever monies are paid to the individual or spent in maintaining/retaining/developing that resource is a part of his cost to the company.
As far I understand your statement. In a non-competetive industry where talents areless in demand then bonus, performance incentive etc.. can be included in CTC!!!!!!!! Thanks a lot for helping me.
From India, Madras
From India, Madras
Hi Radhika,
Welcome to our citehr.com and hope that this site would help you professionally!!!.
Regarding fixed & variable refer the comments in Compensation head which has info ...incase you are not satisfied and please let me know and i would help you out..
Happy Reading...
Cheerio
Rajat Joshi
From India, Pune
Welcome to our citehr.com and hope that this site would help you professionally!!!.
Regarding fixed & variable refer the comments in Compensation head which has info ...incase you are not satisfied and please let me know and i would help you out..
Happy Reading...
Cheerio
Rajat Joshi
From India, Pune
The CTC is whatever an employee will get on his exit from an employment. Viz Basic, HRA, Allowances , Perks any other benefit like mediclaim, Personal Accident coverage etc which is applicable to all. Even gratuity is counted by many companies as CTC.
Regards
Amit
From India, Ahmadabad
Regards
Amit
From India, Ahmadabad
Dear Antony,
I happened to come across some points on CTC.I think contribution to Gratuity can definitely be part of CTC , becuase don't you think the employer has to make contributions to the fund once an employee joins the services of the organisation.More over once he completes the 5 year term he becomes eligible for it.
Best of Regards
Arun Natarajan
I happened to come across some points on CTC.I think contribution to Gratuity can definitely be part of CTC , becuase don't you think the employer has to make contributions to the fund once an employee joins the services of the organisation.More over once he completes the 5 year term he becomes eligible for it.
Best of Regards
Arun Natarajan
If We count Employers Contribution to PF in CTC, also we contribute towards gratuity fund than why we should not count gratuity as part of CTC. Regards Amit
From India, Ahmadabad
From India, Ahmadabad
B’cauz of, the gratuity is not applicable since very first day of joining. most w/com ur comments jitar
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