Hi, I have 5L as CTC, and the employer paying 77k as a retention bonus which is not included as a part of CTC and said it's a one-time payment. Can i include this retention bonus amount in my CTC for my next company to get better pay?
From India, Chennai
From India, Chennai
In my opinion CTC refers to the reccurring annual costs including actuarial costs of employment incurred by an employer towards an employee.
Retention bonus being one of the methods to ensure the continuous service of an employee to the organization, it is not necessary for an employer to adopt it as a regular feature of employment. It can also be ensured by means of a bond to serve a minimum period in the organization or initial engagement on fixed term basis to be followed by regular absorption. If it is a deliberate attempt to enhance your compensation package under a prospective employer, well, there is no guarantee that he would consider the retention bonus paid by the previous employer as an integral part your employability.
Therefore, my personal view is that the inclusion of the one time retention bonus into his CTC by the poster may not have a tangible impact in salary negotiation elsewhere as he expects.
From India, Salem
6016Retention bonus being one of the methods to ensure the continuous service of an employee to the organization, it is not necessary for an employer to adopt it as a regular feature of employment. It can also be ensured by means of a bond to serve a minimum period in the organization or initial engagement on fixed term basis to be followed by regular absorption. If it is a deliberate attempt to enhance your compensation package under a prospective employer, well, there is no guarantee that he would consider the retention bonus paid by the previous employer as an integral part your employability.
Therefore, my personal view is that the inclusion of the one time retention bonus into his CTC by the poster may not have a tangible impact in salary negotiation elsewhere as he expects.
From India, Salem
Retention Bonus has several schemes. It may be paid at the end of the year / at the end of 3 or 5 continuous years of service etc.
If it is paid at the end of each year, it may be considered as part of CTC (yearly). In other cases it may not be.
From India, New Delhi
If it is paid at the end of each year, it may be considered as part of CTC (yearly). In other cases it may not be.
From India, New Delhi
Actually they had mention that my rentention bonus will be around 1.5k over the period of two years (from jan 2019 to dec 2020) and that will be provided in quaterly installments. So now i got an offer from another company there the company hr said that ur rentention bonus was not included in ctc and also they clearly mentioned that this bonus will be applicable only for 2 years 2020 dec. So now my question is
Will they consider my rentention bonus (77k half of the amount ) as part of ctc ?
From India, Chennai
Will they consider my rentention bonus (77k half of the amount ) as part of ctc ?
From India, Chennai
It transpires that there will quarterly payout of the incentive which will be amounting 75k at the end of the year is a earning and may be considered as pert of CTC while bargaining with the new Organization for remuneration fixation.
Which component will be shown in CTC or not is the policy of the Organization but at the end of the year it is money -75k and to my opinion it should be part of CTC.
From India, New Delhi
Which component will be shown in CTC or not is the policy of the Organization but at the end of the year it is money -75k and to my opinion it should be part of CTC.
From India, New Delhi
Anything that is paid to you by the employer to retain your service is called CTC. Your company does not show as a part of CTC. This is kept away from the claim of employee since not documented, if employer did not pay.
Do not misspell that your employer is doing charity and paying 77K @6.5K per month at the end of the year. This amount is yours and is very much a part of the CTC.
From India, Mumbai
Do not misspell that your employer is doing charity and paying 77K @6.5K per month at the end of the year. This amount is yours and is very much a part of the CTC.
From India, Mumbai
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Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf
Retention quest.doc