nathraoWhat company adds to CTC is beyond your control?
The company sees cost to company when they hire an employee, what employee sees is what he gets in hand and savings like PF etc,
What an employee gets is Basic+DA+ allowances after reducing PF (Employee share),ESIC(employee share) if any,IT, etc.
Analyse your CTC offer carefully and sgregate what you will get monthly and what kind of savings is done like PF and medical care like ESIc etc.
From India, Pune
umakanthan53C.T.C is a mere accounting tool employed by some companies in India and African countries to arrive at the total cost incurred by the employer per employee per annum in all respects. The inherent purpose being the advance determination of the total cost of employment of an employee per year including the cost of retention. However, it is used by employers strategically to lure a job aspirant in the matter of salary negotiations prior to appointment. Therefore, in the early phase of salary negotiation itself, the prospective employee should clearly indicate his expected gross salary before the admissible statutory deductions. He should simply ignore the statutory contributions made by the employer towards fringe benefits. In my opinion, CTC can not have any legal implications unless it forms part of the contract of employment. By and large, every prospective employee should meticulously analyze the salary offer and make sure what he would have on hand every month after his statutory deductibles only as advised by Mr. Rao.
From India, Salem
Shailesh Parikh_HR ProDear Anonymous
I have gone through the CTC break up sheet the fat is as under.
1. Company has shown company's pF contribution as part of CTC. - So your contribution and company's contribution will be deducted from your monthly salary @25% of Basic.
2. Company has also mentioned Gratuity as part of CTC, which is notionally shown as earning but since company will be depositing that amount towards your Gratuity fund your annual earning shall be deducted@ 4.81% which comes to Rs. 1071/yr., while in your sheet it has been mentioned Rs.12,852/ Please check with them.
Otherwise the mentioned break up is both legal and logical as per prevalent practices, subject to agreement of both the party i.e. employee and employer.
99 98 97 10 65
From India, Mumbai
CTC is nothing but Cost to the Company. As it denotes the employee has no role to play in the composition of the CTC. You should look at the gross salary and the net package to know the details and if there is any issue with regards to the latter you can always ask for explanation with the HR.
Thanks and Regards
From India, Hyderabad
vaibhav-satveThank you all for your valuable advice and suggestions.
From India, Lonavla