Dear Colleagues,
Whenever we negotiate salary for a new position, should negotiation be done component-wise (Basic, HRA, Medical, etc.) or should it be done directly on gross or CTC? Kindly guide.
Thanks
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Whenever we negotiate salary for a new position, should negotiation be done component-wise (Basic, HRA, Medical, etc.) or should it be done directly on gross or CTC? Kindly guide.
Thanks
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Hi,
Generally, it's been done on CTC, but sometimes it's done on take-home salary or Gross also. Candidates do ask that they need this much amount as take-home salary, so we prepare salary accordingly. But CTC negotiation is the most in application these days.
Regards,
Amit Seth.
From India, Ahmadabad
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508Generally, it's been done on CTC, but sometimes it's done on take-home salary or Gross also. Candidates do ask that they need this much amount as take-home salary, so we prepare salary accordingly. But CTC negotiation is the most in application these days.
Regards,
Amit Seth.
From India, Ahmadabad
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I am new to this Site. I would like to know what is the full form of CTC as this is not the terminology used in UAE. Isak Job Analyst +971505458619
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Hi,
CTC stands for "Cost to the Company." This is calculated taking into account all the expenses borne by the company towards an employee, like employer contributions to PF, gratuity, medical insurance, etc.
In India, the salary has mainly two parts: one is Gross Salary, i.e., payable to the employee directly and can be a fixed or variable component. Major components of this comprise Basic, HRA, Conveyance, Food Allowances, Performance Allowances, incentives linked to performance or company's performance. The other part consists of all expenses that the employer incurs for the welfare of the employee (mentioned above, like PF, gratuity, etc).
Example is mentioned below:
Basic: 120000
HRA: 96000
Conveyance: 9600
Employee contribution to PF: 12000
Medical Reimbursement: 15000
=====================================
Fixed Gross: 252600
=====================================
Performance Bonus: 18000
=====================================
Total Gross Salary: 270600
=====================================
Gratuity: 57600
Employer contribution to PF: 12000
LTA: 30000
Medical Insurance: 20000
=====================================
Cost to the Company (CTC): 390200
=====================================
NOTE: All the numbers used above are just approximations, just to explain the logic.
Thanks,
Neeti
From India, Mumbai
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CTC stands for "Cost to the Company." This is calculated taking into account all the expenses borne by the company towards an employee, like employer contributions to PF, gratuity, medical insurance, etc.
In India, the salary has mainly two parts: one is Gross Salary, i.e., payable to the employee directly and can be a fixed or variable component. Major components of this comprise Basic, HRA, Conveyance, Food Allowances, Performance Allowances, incentives linked to performance or company's performance. The other part consists of all expenses that the employer incurs for the welfare of the employee (mentioned above, like PF, gratuity, etc).
Example is mentioned below:
Basic: 120000
HRA: 96000
Conveyance: 9600
Employee contribution to PF: 12000
Medical Reimbursement: 15000
=====================================
Fixed Gross: 252600
=====================================
Performance Bonus: 18000
=====================================
Total Gross Salary: 270600
=====================================
Gratuity: 57600
Employer contribution to PF: 12000
LTA: 30000
Medical Insurance: 20000
=====================================
Cost to the Company (CTC): 390200
=====================================
NOTE: All the numbers used above are just approximations, just to explain the logic.
Thanks,
Neeti
From India, Mumbai
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CTC SALARY SLIP FORM.xls
Salary & Compensation Guidelines.zip