Senior Analyst - Talent Management
Dy Manager - Hr
Sales & Marketing
Internet Marketing Analyst
Recruitment Support Specialist
We cannot call it as robbery over his salary. It is what we are paying him indirectly.
To make it simple the monthly salary includes all his allowances along with basic and DA. This is used in calculating his gross salary for a year. Along with this there are other benefits such as LTA, Medical Domiciliary, Bonus etc which we include in his CTC thus making it a complete whole.
If an employee avails a LTA or avails reimbursement from his medical domiciliary we actually pay it. That is what we are projecting in the CTC.
So it would be better to explain this to a new commer if you think that you have to maintain a good impression.
Hope this could have cleared your doubt to some extent.
Comments from others are welcomed..
28th October 2006 From India, Madras
After a candidate qualifying all the interview formalities the HR can have a one-to-one meeting session to discuss in detail about the CTC.
The salary breakups can be properly given and take home salary can also be given to them. Indirect and direct emoluments can be discussed in detail.
In brief "SALARY OF AN UPCOMING EMPLOYEE SHOULD BE SHOWN IN BLACK AND WHITE."
This will fetch a good name to the organization and will help to maintain a wonderful employee relationship.
28th October 2006
Once committed in writing the company should, for its long-term benefit, honour it and pay the employee at the time of full & final settlement in the event of the employee's resignation. Hence it will not be considered a robbery even though the employee is not getting the compensation in his monthly component.
During the time of the salary discussion / negotiation the company should explain the benefit of any component of the salary that is not part of the monthly component like tax benefit (LTA, Medical reimbursement etc.), retiral benefit (PF, Gratuity etc.).
All this said, it will be easier to attract new employees only of the monthly component of the compensation is high.
29th October 2006
I think this issue will be cleared once the candidate gets his appointment letter. usually we give clear salary split-ups in appointment letter. at times of HR interview round we finalize the commercial part by getting his/her expected CTC and work out accordingly after negotiation.
I hope this would clear any doubts at the time of induction.
29th October 2006 From India, Madras
WE NORMALLY INCLUDE :
IN TO THE CTC BUT IF YOU GO DETAIL AS WE ARE INCLUDING APART FROM ABOVE IS
GESTATION PERIOD EXPENCES ( WHEN A EMPLOYEES JOINS IT TAKES
MINIMUM 2 MONTHS TO PERFORM
TO HIS FULLEST )
PLACE TO SIT / ( BECAUSE IT HAS SOME MARKET VALUE )
COMPANY'S SPONSER TOURS,
GIFTS AND INCENTIVES ( IF ANY )
29th October 2006 From India, Pune
My suggestion is:
Any person whose accepting a new job should breakup the CTC into two.
1. Monthly Fix
2. Monthly Variable
And also look at whats Yearly fixed.
I think then a person would have an idea as to what exactly comes in Hand.
29th October 2006 From India, Hyderabad
Always better to explain in detail about the Cost 2 Company while job offering a prospective employee.
A prospective employee after recieving his offer letter the only question running in mind is ' What will be my Take home ? '. Its advisable to have Salary break up template more self explainatory viz; The Components of Gross, other Annual payments, Employers contribution PF, Deductions(both PA & PM) and thus giving no room for any robbery. So the impression is not lost rather gained more.
30th October 2006 From India, Madras
12 % of PF(both employer & employee)
20 % of HRA in metros and 15% in other cities
4.75 to ESI
and gratuity is calculated as per norms in the org.
spl allowances does not ve any particular % mostly medicine domicilary, conveyance, LTA etc comes under tis.
Hope tis is clear enough.
31st January 2008 From India, Madras
7th October 2008 From India, Mumbai
21st September 2009 From Saudi Arabia
I m also having a confusion...... is it necessary to fix an amount (% age ) of bonus to be given to employees.
As in my office there is no such HR dept. and whenever a new employee joins, he ask for the breakup of CTC but my account manager refused to provide the breakup as his plea is ... whats the need of breakup? just tell him the net take home salary and ask him that he will be provided the other benefits as per the rules... he said that we cant announce Bonus in advance and at the time of bonus if it should be less than we have to pay him and if it should be more than we cant deduct from employees salary( as bonus totally depend upon the decision of our MD)........ so is it right ??????/
1st February 2010 From India, New Delhi
I honestly appeal all HR professionals to give clear clarity on CTC and Gross salary. Can anyone guide me on
24th March 2010 From India, Bangalore
Then how he is supposed to answer based on current IT salary enviornment..? He would not think in 1st place d 'x' Rs/month as a monthly salary including all other points(coz he wudnt be knoing company incentive schemes) So if he replies 10000 expecting it as a basic(main salary without other all additions eg Psa hra etc) then how company will relate this to CTC ? or eg If he answers 1.20(0r 1.20-2.20) / per anum by considering 10000(or onwards) as basic then how tat "1.20-2.20" is cosidered as;by a company?[/B]? What company will consider 1.20-2.20/anum as, will "1.20-2.20" b considered as including everything or how(becoz then basic would go to b lesser dan wat that employee had thought as a net take home salary ie 10000)?
28th May 2010 From India, Mumbai
Suppose I am drawing gross salary of Rs.23500/- p.m. and due to proposed rise in ESI ceiling to Rs.25000/-, I will be covered in ESI and I shall have to pay 1.75% my contribution and my employers' liability to my ESI contribution will be 4.75% of my gross salary.
Now suppose I am having CTC pay method in a company, do I have to pay all 6.5% of ESI contribution from my pocket only? Is not employer responsible to pay his part of contribution @ 4.75%? People say that in case of CTC system, take home salary of employee will reduce by 6.5% if he is first time covered under ESI. What is all these ? How it all works?
Can any of you friends explain me the facts ?
Thanks and regards,
23rd September 2013 From India, Surat