Hi Seniors,
Sub: Remuneration Query
My company has decided to change the Remuneration terms as CTC from Gross. So would like to know the accurate process to take it ahead. I would be more helpful if i can get proper format of 'amended remuneration terms' to get it acknowledged by existing employees.
Seeking for your guidance.
Thanks
Ankita Bhavsar
From India, Ahmadabad
4Sub: Remuneration Query
My company has decided to change the Remuneration terms as CTC from Gross. So would like to know the accurate process to take it ahead. I would be more helpful if i can get proper format of 'amended remuneration terms' to get it acknowledged by existing employees.
Seeking for your guidance.
Thanks
Ankita Bhavsar
From India, Ahmadabad
Dear Ankita,
CTC means "Cost to the Company". Any benefit which you can cost it and put a figure to it becomes a component of the CTC.
Attached is an excel sheet which captures most of the components of a CTC. In your company the salary and benefits components may vary, hence you can add that also and arrive at the CTC for an employee. If you want to give an employee a CTC of Rs.10.00k then just change the figures in column G23. You will get the CTC breakup for p.m. and p.a.
Regards,
Bobby
From India, Pune
CTC means "Cost to the Company". Any benefit which you can cost it and put a figure to it becomes a component of the CTC.
Attached is an excel sheet which captures most of the components of a CTC. In your company the salary and benefits components may vary, hence you can add that also and arrive at the CTC for an employee. If you want to give an employee a CTC of Rs.10.00k then just change the figures in column G23. You will get the CTC breakup for p.m. and p.a.
Regards,
Bobby
From India, Pune
Dear Bobby & Vaibhav,
Thanks to share the detail & try to solve my query. But my actual concern is different than this. I am well aware about all this calculation related to CTC. the only big challenge is convincing existing employees for CTC structure & void the previous dues of employers liabilities i.e Bonus, ESIC Contribution, Gratuity etc.
Now I am looking at the right procedure to follow ahead with having final contain in it which includes history & mistory too along with half yrly increment!
I have drafted following but i am not satisfied with it. So please do suggest me right procedure.
====
Date:
Sub: Revised CTC Remuneration
Dear ..
The management takes great pride in reappointing you as ‘Designation….’ in Concept Infoway Pvt. Ltd. w.e.f. <DOJ>…...
As mutually agreed, your monthly revised cost to company remuneration is Rs. …../-, inclusive of other allowances and subject to deduction of any statutory or any other deductions.
It will be increased on below mentioned date & time, based upon your all round performance during the tenure. However, in case of your poor performance the increment can be withheld also at the sole discretion of the Management. Increments are neither automatic nor a right.
Effective Date & Month Monthly Revised CTC Remuneration Amount
/-
/-
/-
The bifurcation of your salary into various heads is at the sole discretion of the Management. The Management is further empowered to re-structure your cost to company remuneration at any time in future at its sole discretion.
We are delighted to have you in the company. Please indicate your understanding and acceptance of the above terms and conditions by signing and returning the duplicate copy of this letter.
Thanking you,
====
Thanks
Ankita
From India, Ahmadabad
Thanks to share the detail & try to solve my query. But my actual concern is different than this. I am well aware about all this calculation related to CTC. the only big challenge is convincing existing employees for CTC structure & void the previous dues of employers liabilities i.e Bonus, ESIC Contribution, Gratuity etc.
Now I am looking at the right procedure to follow ahead with having final contain in it which includes history & mistory too along with half yrly increment!
I have drafted following but i am not satisfied with it. So please do suggest me right procedure.
====
Date:
Sub: Revised CTC Remuneration
Dear ..
The management takes great pride in reappointing you as ‘Designation….’ in Concept Infoway Pvt. Ltd. w.e.f. <DOJ>…...
As mutually agreed, your monthly revised cost to company remuneration is Rs. …../-, inclusive of other allowances and subject to deduction of any statutory or any other deductions.
It will be increased on below mentioned date & time, based upon your all round performance during the tenure. However, in case of your poor performance the increment can be withheld also at the sole discretion of the Management. Increments are neither automatic nor a right.
Effective Date & Month Monthly Revised CTC Remuneration Amount
/-
/-
/-
The bifurcation of your salary into various heads is at the sole discretion of the Management. The Management is further empowered to re-structure your cost to company remuneration at any time in future at its sole discretion.
We are delighted to have you in the company. Please indicate your understanding and acceptance of the above terms and conditions by signing and returning the duplicate copy of this letter.
Thanking you,
====
Thanks
Ankita
From India, Ahmadabad
Dear Ankita,
CTC is the total investment by the company to the employee. As the Excel sheet (given by Bobby) shows, CTC = Gross (Basic+DA+HRA+Spl Allow) + Company's contributions to PF, ESI etc + Gratuity (around 5% of the Basic) + periodic allowances (like LTA, Med, furniture allows + other perks (like car, house etc) translated to money.
You may affix a Annexure to your letter stating all the components of the CTC, monthly and yearly.
Rajusiachen
From India, Coimbatore
CTC is the total investment by the company to the employee. As the Excel sheet (given by Bobby) shows, CTC = Gross (Basic+DA+HRA+Spl Allow) + Company's contributions to PF, ESI etc + Gratuity (around 5% of the Basic) + periodic allowances (like LTA, Med, furniture allows + other perks (like car, house etc) translated to money.
You may affix a Annexure to your letter stating all the components of the CTC, monthly and yearly.
Rajusiachen
From India, Coimbatore
Ankita,
The term CTC is ambiguous. The framework differs from one company to another. In the name of CTC, some companies are including the mobile phone reimbursement, conveyance allowances given for outdoor duties, etc. No standard is being followed across various sectors. You can formulate your own policy of including the heads under CTC which may essentially spent on employee other than company related expenses or reimbursements.
pon
From India, Lucknow
The term CTC is ambiguous. The framework differs from one company to another. In the name of CTC, some companies are including the mobile phone reimbursement, conveyance allowances given for outdoor duties, etc. No standard is being followed across various sectors. You can formulate your own policy of including the heads under CTC which may essentially spent on employee other than company related expenses or reimbursements.
pon
From India, Lucknow
Dear Friends,
Very useful in put provided for HR professionals. But one thing in Anita's letter the word "Re-appointing" and "DOJ"--- here which date is to be mentioned these should not be required in that letter. Insted of that with reference to your pervious LOA is substitute and your previous services should not be distribed
Regards,
PBS KUMAR
From India, Kakinada
Very useful in put provided for HR professionals. But one thing in Anita's letter the word "Re-appointing" and "DOJ"--- here which date is to be mentioned these should not be required in that letter. Insted of that with reference to your pervious LOA is substitute and your previous services should not be distribed
Regards,
PBS KUMAR
From India, Kakinada
hii dear,
CTC is the total of break up of the employee's monthely salary .
the best way to understand in ur case is CTC = Gross + employer's( PF, ESIC, Insurance premium, clothing or washing expenses etc.)
and when you substract employee,s PF, ESIC , Insurance premium etc u willl get Net Take home of the employee.
For detail please refer to the attachment.
Regards
Sugeet
From India, Mumbai
CTC is the total of break up of the employee's monthely salary .
the best way to understand in ur case is CTC = Gross + employer's( PF, ESIC, Insurance premium, clothing or washing expenses etc.)
and when you substract employee,s PF, ESIC , Insurance premium etc u willl get Net Take home of the employee.
For detail please refer to the attachment.
Regards
Sugeet
From India, Mumbai
Dear Ankita,
the Joining date wont be change... only a letter u have to issue which will be called as Salary revision letter, the DOJ and every thing will remain the same. only your Salary structure will be revised.
Regards
Sugeet
From India, Mumbai
the Joining date wont be change... only a letter u have to issue which will be called as Salary revision letter, the DOJ and every thing will remain the same. only your Salary structure will be revised.
Regards
Sugeet
From India, Mumbai
Dear Ankitaji
From above all views I have some different views about your poroblem.First of all I do not know
why this poroblem is discussing this way.Ankita it is very difficult to change the remuneration into ctc
without changing the status of ESI/PF/Bonus/Gratuity or any other type of benefits already available.
It is necessary to know what type of industry in which you are working and the status of agreement/
union activites etc.or many more back history and how save your employer without any legal libility.
It requires private or personal and practical discussions.Then I think the solution came out.If you agree
or not but my opinion is very clear.You must think all this than go ahead.
thanks and have good day.
P.L.Chhipa
From India, Udaipur
From above all views I have some different views about your poroblem.First of all I do not know
why this poroblem is discussing this way.Ankita it is very difficult to change the remuneration into ctc
without changing the status of ESI/PF/Bonus/Gratuity or any other type of benefits already available.
It is necessary to know what type of industry in which you are working and the status of agreement/
union activites etc.or many more back history and how save your employer without any legal libility.
It requires private or personal and practical discussions.Then I think the solution came out.If you agree
or not but my opinion is very clear.You must think all this than go ahead.
thanks and have good day.
P.L.Chhipa
From India, Udaipur
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PF query.doc
Equal Remuneration Act 1976.pdf