Dear all members, Our company auditor asking for clarification? Bonus is a part of CTC? Please clearly Bonus is a part of CTC and provide any notification if there.
From India, Bangalore
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5From India, Bangalore
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Any benefits given to the employee is considered as Cost to the Company. No notification to this effect is released by the Govt. Pon
From India, Lucknow
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From India, Lucknow
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Dear Nikhilraj,
CTC (Cost to company) consists of all costs that occur towards any employees. It includes PF (employer contribution), ESIC (employer contribution), Medicalim, Personal accident policy, bonus, etc. There is no notification by the government as it is not a concern for the government; it is purely a company policy. This is an unwritten corporate law.
Regards,
Tushar Swar
From India, Mumbai
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CTC (Cost to company) consists of all costs that occur towards any employees. It includes PF (employer contribution), ESIC (employer contribution), Medicalim, Personal accident policy, bonus, etc. There is no notification by the government as it is not a concern for the government; it is purely a company policy. This is an unwritten corporate law.
Regards,
Tushar Swar
From India, Mumbai
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The items falling and part of the CTC is a matter of the company; which it wants to include to arrive at. As per law, bonus is calculated on profits and for the same register A, B, C, D are maintained by the companies. At present, the eligibility for a bonus is employment of a minimum of 30 days in the previous year and a salary of Rs 10,000.00. If we are paying a bonus to a person having a salary of Rs 20,000.00; technically, the payment to such person given as a bonus is incorrect. It shall be an ex gratia. Therefore, from a legal point of view, it is incorrect to mention a bonus in the CTC (it requires a declaration for the financial year; it has been given). Largely, companies have a practice of showing Bonus and Gratuity as part of the CTC.
From India, Jaipur
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From India, Jaipur
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Dear Nikhilraj,
Greetings for the day.
CTC means the Cost to Company, i.e., what is the cost of an employee borne by the company, including the gross salary. In addition to pon1965, I also agree that any compensation and benefits provided to employees are considered as CTC, with the bonus being a part of it. For this, no notification is required from either side.
Thanks and regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
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Greetings for the day.
CTC means the Cost to Company, i.e., what is the cost of an employee borne by the company, including the gross salary. In addition to pon1965, I also agree that any compensation and benefits provided to employees are considered as CTC, with the bonus being a part of it. For this, no notification is required from either side.
Thanks and regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
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In order to project an inflated CTC amount, the bonus amount is considered as part of CTC (all benefits given to the employee converted into cash value) shall be the total Cost To Company (CTC) for an employee. This is a procedure used by the HR team in the salary fitment process, before appointing an employee and offering a position.
Thanks,
R. K. Nair
From India, Aizawl
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Thanks,
R. K. Nair
From India, Aizawl
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Dear Nikhilraj,
Cost to Company (CTC) is not a statutory term defined in any of the Labour Laws; therefore, CTC has no statutory standing. Bonus is a statutory term and is subject to certain terms and conditions defined under The Payment of Bonus Act.
So, whether to include Bonus in CTC or not is entirely for the purpose of Company Accounts and Finances and its internal policy.
From India, Mumbai
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Cost to Company (CTC) is not a statutory term defined in any of the Labour Laws; therefore, CTC has no statutory standing. Bonus is a statutory term and is subject to certain terms and conditions defined under The Payment of Bonus Act.
So, whether to include Bonus in CTC or not is entirely for the purpose of Company Accounts and Finances and its internal policy.
From India, Mumbai
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Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf