Curious About TCC and Compa Ratio? Understanding Their Impact on Your Salary Increment

Hi,

I recently transitioned to company payrolls after completing my probationary period. As I am deeply interested in all HR practices, I make an effort to gather as much information as possible about the various practices implemented by my employer.

Upon reviewing the communications shared regarding my transition, I came across terms like TCC and Compa Ratio. Could someone kindly explain the meanings of these terms to me?

I have gathered that any employee salary increments in this scenario were based on TCC and Compa Ratio. My ratio was approximately 98.7%, while another individual had a ratio of 104%. Does this imply that I received a smaller increment? How is this percentage calculated, and how does it influence employee salary decisions?

I would greatly appreciate a prompt response to this query.

Thanks and Regards,
Parichay Dewan.

Hi,

Theoretically speaking, Compa Ratio gives the relationship (ratio) of an individual's salary to the midpoint of his present band/grade. A compa ratio of less than 1 (or less than 100%) means that he's paid lower than his band's midpoint (average).

TCC (Total Cost to Company) would mean a sum of fixed pay and variable pay. Fixed Pay consists of total guaranteed cash (base salary + cash emoluments) + Conveyance + Loans + Housing + Retirements. Variable Pay consists of performance-based bonuses/training costs, etc.

Regards,
Dheeraj 🌟