Hi all I have joined a new organsation , and they have given me an appointment letter stating that Paid leave is included in the CTC. is it legally possible to do it
From India, Mumbai
From India, Mumbai
No its wrong. Company cannot include paid leaves into CTC. Paid leaves are statutory requirement and they are to be given.
From India, New Delhi
9From India, New Delhi
Dear Ravi,
Paid leave cannot be included in the CTC.It is just that when an employee who has more than a year experience leave the organisation and incase if his/her accumulated non taken PL is there it can be encashed.But that too depends on company norms.
Rgs,
Lavanya :)
From India, Madras
Paid leave cannot be included in the CTC.It is just that when an employee who has more than a year experience leave the organisation and incase if his/her accumulated non taken PL is there it can be encashed.But that too depends on company norms.
Rgs,
Lavanya :)
From India, Madras
As mentioned by our other colleagues on this site, it is right, paid leave cannot be included in the CTC. BTW which company is this?
From India, Pune
From India, Pune
Hi Ravi,
Let us look at it from other angle. CTC includes every cost which employer incur upon an employee during his employment tenure. Some are tangible which are generally shown in the offer letter/ salary stack-up sheet. There are some intangible cost which are not shown in offer letter but it is cost to company, e.g.
1. Paid Leave
2. Recruitment cost
3. Work station cost
4. System cost
5. Communication cost
6. Refreshment cost
7. Stationary cost
8. Rewards cost
9. Administration cost on PF, ESI, Gratuity etc..etc..
These are all CTC to the company, but not known to employees. Logically management has to look at the above cost also for their budget and expenses, because indirectly they have to pay the money for above. But they do not bargain on above as part of compensation package.
Regards,
Anup
From India, Hyderabad
Let us look at it from other angle. CTC includes every cost which employer incur upon an employee during his employment tenure. Some are tangible which are generally shown in the offer letter/ salary stack-up sheet. There are some intangible cost which are not shown in offer letter but it is cost to company, e.g.
1. Paid Leave
2. Recruitment cost
3. Work station cost
4. System cost
5. Communication cost
6. Refreshment cost
7. Stationary cost
8. Rewards cost
9. Administration cost on PF, ESI, Gratuity etc..etc..
These are all CTC to the company, but not known to employees. Logically management has to look at the above cost also for their budget and expenses, because indirectly they have to pay the money for above. But they do not bargain on above as part of compensation package.
Regards,
Anup
From India, Hyderabad
Hi,
In CTC, the employer contribition in PF will get include along with the other allowance like LTC etc also the performance bonus will also be included in CTC.
Hope I'm correct with this. If wrong, pls update me in this regard.
waiting for ur reply.
Regards,
Sivaranjani Sriram
9843206355
From India, Madras
In CTC, the employer contribition in PF will get include along with the other allowance like LTC etc also the performance bonus will also be included in CTC.
Hope I'm correct with this. If wrong, pls update me in this regard.
waiting for ur reply.
Regards,
Sivaranjani Sriram
9843206355
From India, Madras
Hi Sivaranjani, You are right. Most of the companies consider all these as components of CTC.
From India, New Delhi
From India, New Delhi
Dear Friends,
CTC means by paying 'X' amount to an employee how much the compnay incurring expenses. Pl correct if I am wrong.
Leave Salary / encashment is a kind of reward given to an employee for his devotion towards his employment.
Besides Leave encashment is one of the basic terms and conditions of the employment and statutory also.
In some authors say that leave encahment is one of the welfare measures/benefits.
Therefore it is not justifiable to construe leave encashment as one of the components of CTC.
For your kind information, in Bangalore some of the BPOs IT industrries quote CTC as Rs.22,000/- and take home salary is pitifully Rs.9500/-. the Balance amount is deducted in the form of compnay expenses.
Therefore to my comprehension, the componenrts of CTC should be Basic, (DA),HRA,Conveyance,etc. Transportation,Free lunch,Bonus,all allowances,Insurance.
regards
Michael Nicholas
From India, Madras
CTC means by paying 'X' amount to an employee how much the compnay incurring expenses. Pl correct if I am wrong.
Leave Salary / encashment is a kind of reward given to an employee for his devotion towards his employment.
Besides Leave encashment is one of the basic terms and conditions of the employment and statutory also.
In some authors say that leave encahment is one of the welfare measures/benefits.
Therefore it is not justifiable to construe leave encashment as one of the components of CTC.
For your kind information, in Bangalore some of the BPOs IT industrries quote CTC as Rs.22,000/- and take home salary is pitifully Rs.9500/-. the Balance amount is deducted in the form of compnay expenses.
Therefore to my comprehension, the componenrts of CTC should be Basic, (DA),HRA,Conveyance,etc. Transportation,Free lunch,Bonus,all allowances,Insurance.
regards
Michael Nicholas
From India, Madras
Hi,
Paid leave cannot be included in the CTC. Usually CTC includes PF, Professional Tax etc.
Paid leave or Earned leaves can be alloted to the employee after completion of one year in the organization. This is a statutory requirement, hence it shall not be included in the CTC.
Regards,
U.Anjan Kumar
Paid leave cannot be included in the CTC. Usually CTC includes PF, Professional Tax etc.
Paid leave or Earned leaves can be alloted to the employee after completion of one year in the organization. This is a statutory requirement, hence it shall not be included in the CTC.
Regards,
U.Anjan Kumar
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