Understanding CTC: Should Sales Incentives Be Included in the Total Package?

Dear All,

Kindly suggest, is sales incentive a part of CTC for the company?

Kind Regards,
Vishal G.

Dear Friend,

In a compensation structure, there are typically two modes: fixed and variable. The sales incentives are based on the increase in sales. For example, an employee may be given a target of selling x items. If the employee sells more than x, they will receive an additional benefit in the form of a percentage increase, known as an incentive.

Thanks and regards,
Kameswarao

Why not? Maximum sales incentive, i.e., even a notch above what can be achieved by the best salesperson, can be a part of CTC.

The CTC is a fixed salary for the work any employee has to complete as per his JD. The incentives are the rewards extended to an employee who performs over and above his targets, increasing the bottom line.

Request you to note that incentives are variable based on the activity and the year, while the CTC is a fixed component.

Thanks and regards - Kameswarao