Dear Friends,
Need to figure out if the LTA of any employee in included in the CTC or it can be separately paid quartely.
I am trying to check this for a candidate who we have interviewed and planning to hire for our company.
Need help.
From India, Lucknow
Need to figure out if the LTA of any employee in included in the CTC or it can be separately paid quartely.
I am trying to check this for a candidate who we have interviewed and planning to hire for our company.
Need help.
From India, Lucknow
Dear preeti,
LTA is the part of CTC. The form for repayment may diff. i.e. either quarterly, annually. But it is the part of CTC
With Regards,
Vneet Deshmukh.
"EVERY THINK IS POSSIBLE ONLY WHEN IF YOU CAN DO IT"
From India, Yavatmal
25LTA is the part of CTC. The form for repayment may diff. i.e. either quarterly, annually. But it is the part of CTC
With Regards,
Vneet Deshmukh.
"EVERY THINK IS POSSIBLE ONLY WHEN IF YOU CAN DO IT"
From India, Yavatmal
Hello,
I state once again that there is no law on the subject and that CTC is just a tool for budgetting manpower costs. In simple terms it means the money the organization spends on or for an employee. It is expressed either as monthly figure or as an annual figure.
We must be reasonable enough to treat "conditional payments" paid at monthly (like incentives), annually (Commissions, Bonuses etc by whatever name called) or at larger periods (Loans, Insurances, gratuity etc) carefully.
When CTC is used to bargain salaries, care must be taken to not lure the candidate with a high CTC figure as when the candidates finds out at the time he/she leaves and when these benefits denied to him, there will be considerable negativity generated in the organizational atmosphere. The best example is gratuity. It is normally and by law payable only upon completing FIVE years of continuoue service. If the employee should leave before completing FIVE years, he has not earned that amount by law and is therefore denied that amount. To me, this is cheating! In such cases, either the employer should pay up the due amount or not include it in CTC!!! The same argument holds for Loans-whether for Car or for furniture or for homes. Normally pro rata amount is included in CTC and do not get paid if the employee does not avail such facilities! This also would amount to cheating!
On these yardsticks you decide whether LTA should included in CTC or not, because after all it has to be management decision. I would not inculde it in CTC as while this a manpower cost, one has to EARN it and to that extent it becomes a conditional payment. But you have to decide for yourself.
Is your querry answwered? If not, elaborate!
Regards
samvedan
March 26, 2011
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From India, Pune
I state once again that there is no law on the subject and that CTC is just a tool for budgetting manpower costs. In simple terms it means the money the organization spends on or for an employee. It is expressed either as monthly figure or as an annual figure.
We must be reasonable enough to treat "conditional payments" paid at monthly (like incentives), annually (Commissions, Bonuses etc by whatever name called) or at larger periods (Loans, Insurances, gratuity etc) carefully.
When CTC is used to bargain salaries, care must be taken to not lure the candidate with a high CTC figure as when the candidates finds out at the time he/she leaves and when these benefits denied to him, there will be considerable negativity generated in the organizational atmosphere. The best example is gratuity. It is normally and by law payable only upon completing FIVE years of continuoue service. If the employee should leave before completing FIVE years, he has not earned that amount by law and is therefore denied that amount. To me, this is cheating! In such cases, either the employer should pay up the due amount or not include it in CTC!!! The same argument holds for Loans-whether for Car or for furniture or for homes. Normally pro rata amount is included in CTC and do not get paid if the employee does not avail such facilities! This also would amount to cheating!
On these yardsticks you decide whether LTA should included in CTC or not, because after all it has to be management decision. I would not inculde it in CTC as while this a manpower cost, one has to EARN it and to that extent it becomes a conditional payment. But you have to decide for yourself.
Is your querry answwered? If not, elaborate!
Regards
samvedan
March 26, 2011
------------------
From India, Pune
Dear PAul Preeti,
Pls follow the below mentioned link and i hope it will lead you to your answer...
https://www.citehr.com/327424-lta-details.html
From India, Mumbai
Pls follow the below mentioned link and i hope it will lead you to your answer...
https://www.citehr.com/327424-lta-details.html
From India, Mumbai
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