Hi, My company includes paid leave as part of CTC - can anyone guide me if paid leave is part of CTC or not
From India, Vadodara
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From India, Vadodara
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CTC is not a statutory concept, so there is wide variation on what is included and what is excluded; it varies from company to company. CTC is Cost To the Company, so anything for which the company is incurring expenses is included. It includes both statutory and voluntary benefits provided to employees by the company.
From India, Mumbai
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From India, Mumbai
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There is no hard and fast rule on what can or cannot be included in CTC. As the term states, any cost incurred by an employer for his/her employee may be included in CTC. Some organizations even include non-monetary benefits in CTC, but most organizations include monetary items like salary, allowances, PF, gratuity, bonus, incentives, etc.
Thank you.
From India, Kolkata
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Thank you.
From India, Kolkata
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What is my understanding you are talking about the Earn Leave, it cannot be added to CTC because the concept for this leave is first to earn and then avail. This means that first, any employee has to work 240 days in the succeeding year to be eligible according to the working days in the next year. So how can any company decide on CTC?
From India, Rudarpur
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From India, Rudarpur
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I agree that Earned Leaves are not part of CTC; it's a benefit that you earn while working a certain number of days. CTC is not a statutory concept; it is designed by the organization to include costs, which can vary from one organization to another.
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The original post is whether paid leave should be part of CTC or not. Now, what is paid leave? It may be PL/AL/EL, CL, SL/ML. There is a concept of leave encashment in many organizations, and usually, at the time of leaving the organization, employees are paid leave due to the credit of the employee, which is generally PL/AL/EL.
Therefore, leave in the nature of PL/AL/EL is paid to employees. CTC has no legal sanction and no specific definition; rather, it is organization-specific. In my opinion, anything spent for an employee is part of CTC.
Therefore, paid leave should be part of CTC.
S K Bandyopadhyay (Howrah, WB) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in www.usdhrs.in
From India, New Delhi
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Therefore, leave in the nature of PL/AL/EL is paid to employees. CTC has no legal sanction and no specific definition; rather, it is organization-specific. In my opinion, anything spent for an employee is part of CTC.
Therefore, paid leave should be part of CTC.
S K Bandyopadhyay (Howrah, WB) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in www.usdhrs.in
From India, New Delhi
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