Industrial Relations And Labour Laws
Amith R Murthy
Human Resource (international Compensation
Sr. Accounts Officer
Service In Hospital
6th March 2008
most of the private companies have now removed intangibles income as it comes under FBT...
in private sector it's mostly divided into following parts:
Basic: 40% of CTC
Convenance: 800 pm
PF: 12% of basic
Medical: 15000 p.a.
LTA: 12000 p.a.
Variable & Personal pay- if applicable......
But companies also have one account for Reimbursement:
e.g. telephone (call bills), transfer bills, relocation bills, hospital insurance, pension plans, sick leave, business travel trip, awards, performance incentives, bonus....etc.
6th March 2008 From India, Pune
As the name suggest all expenses incurred on behalf of the employee by the company form part of the CTC. The typical co,ponents of CTC are
2.HRA and all other allowances(Conveyance,Dearness,special etc)
3.PF and Gratuity payable by the co.
4.Insurance payable by co.
Hope this clarifies
8th March 2008
The term CTC means cost to the company. Whatever company is incurring on u comes in CTC.Total compensation includes the value of all the perks and benefits one gets from the Company in addition to ones salary.
Following are the components which comes in CTC.
House Rent Allowance
Company Leased Accomodation
City Compensatory Allowance
House Maintenance Allowance
Maintenance and Petrol Expenses
Leave Travel Allowance
Productivity Linked Variable Bonus(*)
Any Other Performance Oriented Incentive including Stock Option Plan(*)
The above mentioned components comes in CTC.
8th March 2008 From India, Gurgaon
I am new to this forum and its a very informative site ! I am working as HR executive in a start up recruitment consultancy. I need some inputs on the topicslisted below. Can anyone help me out please ?
> What is the salary structure (Basic and Incentive structure) for business developers in a recruitment consultancy ?
> What could be the leave poilcy for a start up consultancy?
Thanks in advance !
9th March 2008
Therefore, do not belive in CTC concept. When accepting a job think whether the monthly salary alone is acceptable or not. Do not take the CTC since there is no where mentioned about BTC ( Benefit To the Company by employing a person- in fact if there is cost involved there should be benefit also !!!!)
10th March 2008 From India, Kannur
It is a simple topic, but still a confusing one i think. Anyways our friend Amit as got the solution for his problem.
Amit what all have told is correct Gratuity is part of CTC as the name says Cost To Company i.e total cost that the company will incur on you. Hope many of our friends have got this clarified.
10th March 2008 From India, Bangalore
Pl find attached the SALARY BREAKUP FOR BUISNESS DEVELOPMENT MANAGER IN RECRUITMENT CONSULTANCY.
According to shops and establishement act , max 12 CL OR SL CAN BE GIVEN IN A CALENDAR YEAR--(MEANS-1ST JAN--31ST DEC)+10 PUBLIC HOLIDAYS(INCLUDING NATIONAL HOLIDAYS AND FESTIVALS).
Reffering to this u can prepare your leave policy .
For further clarification drop me a mail.
10th March 2008 From India, Gurgaon
I am planning to restructure my employee's salary structure from next month(april). Can anybody help me doing it the best way for both employee and the company? How much percentage of the total salary can be given as reimbursements? what are the possible reimbursements for which employee can give bills and get tax exemption? what will be the FBT on these components?
Right now we have Carpetrol, Carmaintenance, driver salary, electricity and telephone reimburesement as per actuals. The other reimbursements like entertainment, books&periodical, office attire and medical are giving along with salary for which bills would be collected at the end of the year.
Can I add more heads? Do those heads have any limits? what are their FBT rates?
13th March 2008 From China
Thanks for the inputs.
But in defence, calculating the monetory equivalent of these benefits is quite difficult. While preparing the CTC, the value of these benefits are difficult to estimate since the the monetory value of these benefits are never highlighted anywhere by the organisation.
Hope someone with a more clear view about defence set up can give more inputs.
13th March 2008 From India, Bangalore