Jeevarathnam
Sr. Manager Hr/admin
Welcomeumesh
Human Resources Management
Harinir_doe
Human Resource

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Dear Seniors,
I recently joined a company as HR, while preparing the offer letter the CTC includes basic,HRA,Medical allowance,Conveyance allowance,Special allowance and Performance based pay(which is paid out quarterly).My question to you'll is that should I include the performance based pay as part of CTC, while calculating Basic pay which is being calculated at 35% of CTC. Your prompt reply in this regard will be greatly appreciated. Thanks.
Harini

Hi Harini
CTC contains
Fixed Gross Pay ( Included all the fixed allowance such as basic, HRA, Conveyance Allowance, Medical allowance etc)
Benefits (Company contributions such as ER contribution of ESI & EPF, gratuity, Bonus, Insurance etc...
Variable pay (Such as performance bonus/incentives)

Dear Harini,
If performance pay is fixed every month (but you pay quarterly) then you can include it in CTC. If it's fixed then basic pay can be set accordingly and if it's not fixed (changes every quarter) then you need to set basic excluding performance pay.
Warm regards,
Umesh Chaudhary

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™