Please suggest the way to make common CTC for all the employees which is favourable to employees (as of now no fixed proforma for this). Also please let me know what are the challenges in doing this? and how it affects the present employees/employer?
From India
From India
CTC is a subject matter being discussed very regularly on this forum. One such discussion had earlier is found in the link indicated hereunder. There are also useful links to assist you on to your right on your screen, browse them.
https://www.citehr.com/599760-point-...has-fixed.html
From India, Bangalore
1073https://www.citehr.com/599760-point-...has-fixed.html
From India, Bangalore
Dear friend,
"CTC" is, so far as the employer is concerned, a cost-based projection of the overall expenses incurred by the employer per employee per annum. Therefore, as it is, it has no legal status, if any other than being an accounting tool.
However, when it is formally and officially used in salary negotiation for prospective appointees, every possibility of it being misunderstood as part of the offer and may lead to disputed claims later in case of premature termination of contracts of employment and as such would require great caution and care in drafting.
The components of monthly gross salary admissible to the post/job should be clearly mentioned first in the CTC
Then comes the participatory contribution part to the Statutory finds like EPFO,ESIC etc. The percentage of employee's contribution and the actual amount of deduction on this basis should be indicated.
If TDS for I.T is there, it should also be shown.
Then the proportionate value of monthly contribution to any gratuity fund should be mentioned with a rider that the claim for gratuity and the liability to pay would be strictly as per the Payment of Gratuity Act,1972 only.
The statutory bonus or performance incentive admissible to the respective incumbent would be subject to the conditions mentioned in the respective Act or Rules applicable only.
Other benefits like LTC, Medical reimbursement etc should be clearly mentioned with reference to the terms and conditions of such schemes.
From India, Salem
"CTC" is, so far as the employer is concerned, a cost-based projection of the overall expenses incurred by the employer per employee per annum. Therefore, as it is, it has no legal status, if any other than being an accounting tool.
However, when it is formally and officially used in salary negotiation for prospective appointees, every possibility of it being misunderstood as part of the offer and may lead to disputed claims later in case of premature termination of contracts of employment and as such would require great caution and care in drafting.
The components of monthly gross salary admissible to the post/job should be clearly mentioned first in the CTC
Then comes the participatory contribution part to the Statutory finds like EPFO,ESIC etc. The percentage of employee's contribution and the actual amount of deduction on this basis should be indicated.
If TDS for I.T is there, it should also be shown.
Then the proportionate value of monthly contribution to any gratuity fund should be mentioned with a rider that the claim for gratuity and the liability to pay would be strictly as per the Payment of Gratuity Act,1972 only.
The statutory bonus or performance incentive admissible to the respective incumbent would be subject to the conditions mentioned in the respective Act or Rules applicable only.
Other benefits like LTC, Medical reimbursement etc should be clearly mentioned with reference to the terms and conditions of such schemes.
From India, Salem
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