Dear all members,
Nowadays, most companies offer their packages in the form of CTC (cost to company). Is there any guideline to compute CTC? I mean, which payments to an employee should be included while computing CTC? It is also informative to add that all companies calculate this differently; some even include all reimbursements like conveyance expenses, etc. Moreover, some companies include the FBT paid by the company on the employee's expenses.
Looking at it from the employee's perspective, in some instances, they receive only 50-60% of their monthly CTC in hand, which was initially assured at the time of recruitment.
All members are requested to post their views and guidance.
From India, New Delhi
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450Nowadays, most companies offer their packages in the form of CTC (cost to company). Is there any guideline to compute CTC? I mean, which payments to an employee should be included while computing CTC? It is also informative to add that all companies calculate this differently; some even include all reimbursements like conveyance expenses, etc. Moreover, some companies include the FBT paid by the company on the employee's expenses.
Looking at it from the employee's perspective, in some instances, they receive only 50-60% of their monthly CTC in hand, which was initially assured at the time of recruitment.
All members are requested to post their views and guidance.
From India, New Delhi
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Mr. X has been offered by one good MNC as follows:
Basic - 60,000/- per month, HRA - 30,000/- per month, Monthly gross - 90,000/- per month, Retirement Benefits - PF - 7200/- per month, Superannuation Benefit - 9,000/- per month, Premium to difference insurance - 1000/- per month, Annual Ex gratia - 60,000/- per year i.e. 5000/- per month, LTA - 1,20,000/- per year i.e. 10,000/- per month, Co's car to bring office and back - 12,000/- per month, Canteen subsidy - 2600/- per month.
Total cash component - 1,05,000/- per month, Retirement Benefit - 16,200/- per month, Insurance - 1000/- per month, Co's car and canteen - 14,600/- per month. CTC - 1,36,800/- per month and yearly CTC - 16,41,600/-.
The above is one classic example of CTC. It varies from organization to organization as there is no legal support. But the fact is the organizations are required to assess the cost of each employee for budgeting, internal control, etc.
S K Bandyopadhyay (WB, HOWRAH) CEO - USD HR Solutions +91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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Basic - 60,000/- per month, HRA - 30,000/- per month, Monthly gross - 90,000/- per month, Retirement Benefits - PF - 7200/- per month, Superannuation Benefit - 9,000/- per month, Premium to difference insurance - 1000/- per month, Annual Ex gratia - 60,000/- per year i.e. 5000/- per month, LTA - 1,20,000/- per year i.e. 10,000/- per month, Co's car to bring office and back - 12,000/- per month, Canteen subsidy - 2600/- per month.
Total cash component - 1,05,000/- per month, Retirement Benefit - 16,200/- per month, Insurance - 1000/- per month, Co's car and canteen - 14,600/- per month. CTC - 1,36,800/- per month and yearly CTC - 16,41,600/-.
The above is one classic example of CTC. It varies from organization to organization as there is no legal support. But the fact is the organizations are required to assess the cost of each employee for budgeting, internal control, etc.
S K Bandyopadhyay (WB, HOWRAH) CEO - USD HR Solutions +91 98310 81531
From India, New Delhi
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Dear Sir, Thanks for your erudite and knowledgeable reply which are useful for my understanding.
From India, New Delhi
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From India, New Delhi
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CTC Calculator.xls
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