Hi Narasimman,
As far as I know there is no hard and fast rule for CTC calculation except the salary components being included.
We at our organisation do not include the bonus and the variable pay (based on performance) under CTC.
We calculate them over and above CTC and refer to it as gross salary.
Hence its up to you how you want it to be to attract and reatin employees.
In surveys employees do not see it as very welcome when his CTC is quoted is a big sum but what he gets in his bank evry month is a meagre amount...hence its not a good policy to include everything in CTC.
If one wants to calculate the CTC for billing purpose then u need to include all that u incur on an employee which will also include the expenses incurred on his traings.
Thanks
Shailly Purohit
As far as I know there is no hard and fast rule for CTC calculation except the salary components being included.
We at our organisation do not include the bonus and the variable pay (based on performance) under CTC.
We calculate them over and above CTC and refer to it as gross salary.
Hence its up to you how you want it to be to attract and reatin employees.
In surveys employees do not see it as very welcome when his CTC is quoted is a big sum but what he gets in his bank evry month is a meagre amount...hence its not a good policy to include everything in CTC.
If one wants to calculate the CTC for billing purpose then u need to include all that u incur on an employee which will also include the expenses incurred on his traings.
Thanks
Shailly Purohit