Hi Friends, Am confused will you please clarify me. Some companies include Incentvies in CTC, some does not include. Which is right? Regards
From India, Madras
Acknowledge(0)
Amend(0)
14From India, Madras
Acknowledge(0)Amend(0)
Hi Antony,
I don't know on what grounds a company can include incentives in a CTC because if you look at it, incentives are additional monetary amounts given to an employee when they perform well enough and meet the expectations or achieve more than the expectations. To be more precise, it is "performance-based pay" which is variable in nature.
CTC is something that is fixed, which an employee would be getting during a year. So, what I understand is that incentives can't be included in CTC because how can anyone fix an additional monetary amount beforehand, which is variable in nature and based on somebody's performance that can keep changing every month. Because nobody can judge somebody's performance beforehand while fixing a CTC.
But at the same time, I have seen a couple of companies that fix their incentives right while fixing a CTC, based on the fact that no matter how good or bad the person would perform during a year, they would be entitled to only a fixed amount as incentives. Nothing less, nothing more, which I personally think can never be an encouraging or motivating tool for the employees to work better.
Hope this helps.
Regards
From India, Delhi
Acknowledge(0)Amend(0)
I don't know on what grounds a company can include incentives in a CTC because if you look at it, incentives are additional monetary amounts given to an employee when they perform well enough and meet the expectations or achieve more than the expectations. To be more precise, it is "performance-based pay" which is variable in nature.
CTC is something that is fixed, which an employee would be getting during a year. So, what I understand is that incentives can't be included in CTC because how can anyone fix an additional monetary amount beforehand, which is variable in nature and based on somebody's performance that can keep changing every month. Because nobody can judge somebody's performance beforehand while fixing a CTC.
But at the same time, I have seen a couple of companies that fix their incentives right while fixing a CTC, based on the fact that no matter how good or bad the person would perform during a year, they would be entitled to only a fixed amount as incentives. Nothing less, nothing more, which I personally think can never be an encouraging or motivating tool for the employees to work better.
Hope this helps.
Regards
From India, Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
12 Vangonotes HRM - Pay for Performance and Financial Incentives.zip
India Inc Moves to Link CXO Pay to Performance.pdf
Salary Break Up - Performance Pay.xls