HR_ROY
Management Coach I Hr Strategist I Career
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
+3 Others

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Hi all,
We are working in a small organisation with a headcount of 50 members. We have our performance appraisal for this year and I need one clarification THAT THE SALARY HIKE'S GIVEN ON CTC OR Gross salary?

We are working in a small organisation with a headcount of 50 members. We have our performance appraisal for this year and I need one clarification THAT THE SALARY HIKE'S GIVEN ON CTC OR Gross salary?[/QUOTE]
Dear Sriram
It is purely as per Management decision but ensure it will not effect net salary interms of TDS and cost Impact for the Company.
In case of Grade IV employees it based on Increase in DA points under state & central departments.
Technically PMS should be mapped with performance (JD(Job Describtion), KRA (Key Result Areas) & KPIs (Key Performance Indicators)).
Thanks & Regards
Karthik
++91 81211 97979

Dear,
The appraisal should be based on CTC as every management is concerned about the total costing incurred on employees.
At the time of appraisal or after appraisal they will check the difference of overall CTC not gross. So once you give appraisal to any employee on CTC, then you can break it on increased gross+contributions+other benefits.

One principle to be born in mind is that the hike whether on gross salary or on CTC shall enable the employee to neutralize the increase in inflation and bring him some relief in his costs too. Therefore, the wage hike is a balancing act between the two costs i.e employee and employer.
B.Saikumar

Dear
Isn't CTC dependent on Base (Basic) Pay ???
Or, in your case these two are different and distinct entities ????
Hike is generally done on Base salary. The CTC hike follows from it.
Warm regards.

In both the case;
whether the employee will get the same Salary ???
or diufferent salary ???
What I mean to say is: Even if salary hike is given on Basic salary, it will get reflected accordingly in the CTC.
Isn't it ???
Also, the amount that the employee takes home actually, remains the same.
Only difference is, when we look at things from the CTC the increase may look bigger.
This is a better way, if the idea is to fool the employees in believing that they are being given a BIGGER CARROT !!!

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