Is It Normal for an Experience Letter to Include CTC? Seeking HR Insights and Guidance

Hi,

I have been issued an experience letter by Reliance Communications Ltd. with CTC specified over there. As per the HR executive, this is the standard format they follow. Is it justified to have CTC in the experience letter? CTC, which has always been confidential in the employment industry? Kindly guide me if this is as per the HR policies or is a violation.

Regards, Hmt...

Hi,

Generally, the salary part or CTC is not mentioned in the experience or relieving letter. However, the company can have its own format in which they can mention CTC. Each company's internal HR policy can decide what to include in the letter; there is no law regarding this.

Regards,
Harshad

It is not general HR policy to disclose the CTC in the experience letter. It may be the practice of the Rel. Comm. but you can request them to exclude the same for confidentiality.

Salary certificate is different from the experience letter and relieving letter. Only a salary certificate should have the salary mentioned in it.

When I left my company, they gave me a salary certificate and a relieving letter cum experience letter.

Hi Raj,

I believe Reliance should reconsider the content of their experience letter. An experience letter should not include details about the Cost to Company (CTC).

Regards, Raj

It is okay to have CTC on the experience letter. A lot of companies have it in this format. It is as per each company's discretion.

Hey, they have done that because they are trying to inform the other company about the salary you are getting and where you will join in the future. That's all.

Yes, I agree with you. There are 3 distinct documents on separation:

1. Relieving letter: For the use of ex-employee and copies sent to other internal departments for the purpose of last salary calculation and other dues, etc. It forms an important record for the company to preserve.

2. Experience letter/certificate: For the use of ex-employee, it talks about the tenure and contributions of the employee, wishing him luck.

3. Salary Certificate: For the use of ex-employee, it certifies the salary for various purposes.

However, some companies combine these into one or two documents. It is just a matter of their HR practice being Good or Excellent.

Regards.

That's correct, my dear. It is to prevent the ex-employee from taking advantage of the company name and reputation and negotiating a much better pay packet (a mean, sadistic streak, not to let the "deserting" employee enjoy bigger moolah!).

But what is forgotten is that, in the process, they also divulge the CTC given to a person of a certain qualification and experience. So the data, which every employee is directed not to reveal, is out in the open.

Regards.

Dear HMT,

Some companies issue both the salary and experience certificate as the same document. You must understand what they mean when they state "Salary is confidential." They expect you to maintain confidentiality regarding your salary while working with them. Do not confuse this with other statements.

Good luck!

"They prefer you to be confidential about your salary when you are working with them! Don't mix that with other statements."

Good strategy by "some companies"!!!!

Keep the salary confidential when you are working with them, so that your peers and seniors do not demand more than what you get!!

When you quit; then let the whole world know how much you were getting; so that you do not inflate your salary; you should not get more than 5% for deserting us!!! (Good example of NIGYSOB game!)

We hope this previously confidential knowledge will not be transmitted to the existing employees, somehow!!

How this is possible, I do not know.

Those good in mathematical concepts can perhaps explain that "the world at large" is a large set and "employees in a company" is a small set, and both are disjoint sets (i.e. an employee of a company is not a member of the set "world at large"). Possible in the near future, now that we have people residing almost perennially in space stations, the day is not far when we'll have interstellar employees!

Or, perhaps, NOW it does not matter to the existing employees, now that the person has left their company.

Maybe they think - (if he was getting more); good that he left.

- (if he was getting less); good that he left.

"I got it right, Ma'am - we should uphold and maintain the status quo; why should one even question such a fundamental belief and policy!!"

(There was a post sometime back when an accountant of a public company was put in trouble by a friendly neighborhood HR (no, not anyone we know), for disclosing the MD's salary, which in any case is published in the Annual Report, for the whole world to know.)

Thanks and Regards.

Dear Raj Kumar,

The accountant in any company has the responsibility of keeping certain information only to themselves. That's their duty (not just salary but also anything else). If the information is available publicly, let people who want to know seek information from other sources. But as an accountant, they are asked not to reveal it (as if whatever is published is 100% correct).

In our case, irrespective of experience or salary, a salary certificate is still being prepared - I hope you agree. As a recruiter, I am interested in knowing what a potential candidate was paid in their last job, and I would prefer an attested certificate. I am not particular that I need separate certificates for experience and salary. If they are separate, I need both. If they are on the same certificate, I still need them.

Also, to clarify your confusion about the accountant revealing information of top employees within the company or outside the company - it is different when compared to an employee seeking their salary or experience certificate.

I know a lady on this forum who has just 1.5 years of experience in HR and is earning Rs. 50,000 per month (6 lakhs per annum). She is just a B.Com with an MBA. Obviously, companies would not believe it unless she has a salary statement or experience letter to prove it (vice versa: 1.5 years and 6 lakhs? or 6 lakhs for just 1.5 years?).

I hope you understood.

I think the person who posted their query wants to show a higher salary and was "pissed" off with the fact that they can't do that. Why support such people?

Hi HMT,

Exactly what is the problem if CTC is mentioned? In fact, it's good, isn't it? You don't need two documents to show your experience and salary. Why cry foul?

Regards,
Shikha

Exactly, Shika. It's not a problem at all... and the best part is people try to create a problem out of it.

Dear Ash and Shikha,

I didn't mean to offend you. Ash, I tend to agree with the last paragraph of your post - "I think the person who posted his query wants to show a higher salary and was 'pissed' off with the fact that he/she can't do that. Why support such people?"

I ain't that dumb :-D But, aesthetically too, I would personally prefer a stand-alone Experience Certificate that, apart from other factuals, highlights my contributions, temperament, nature, and potential, basically relating to the joy of working. It is meant to be a cherished document in the hands of the receiver.

Stating a monetary figure as an equivalence reduces its "true value" (especially when we can issue a 'Salary certificate' for that specific purpose). Imagine explaining to my great-grandson someday the meaning and value of rupee devaluation along with my career highlights? An unnecessary appendage!!

Damn it... why didn't I think of this before. Now, my previous experience letters are 'aesthetically' so dull (what will my great-grandchildren think... sigh).

Yes, we all must have a 'vision'! Seriously speaking, I try to do all my tasks in a manner as if they will be there for posterity and future generations to see - "what will they think about me?" keeps me on my toes; yes ma'am, no shoddy work.

By the way, I can't help feeling amused at the thought of grandchildren in "chaddhis" looking at your experience certificates and laughing heartily when they see the "salary"!! 😁

Hi,

Generally, in all organizations, the relieving letter and experience certificates will be given in a combined format, but in some organizations, they will provide separate certificates. Here, nobody is at fault. According to their norms, they are playing their roles. You could have taken a copy before submitting the original to the current employer.

You can refer to more information at: <link outdated-removed> (Search on Cite | Search on Google)

Hi Shikha & Ash,

It's not a matter of showing it to my grandsons. Rather, it's a matter of my self-esteem. Every time I see the letter, it reminds me of being a bad bargainer and a fool, which they have made me. And it's not that I have not tried to get a customized letter from HR, but they have refused to issue it. I would not have minded if my salary was up to the industry standards.

Can you tell me the average salary for an engineering graduate with 5 years of experience?

Hemant,

That's the reason you want to move - because you are not being paid according to what you feel you are worth. But that does not mean you can put a different figure across during the interview and get a better pay. Please state the reason you are moving to your prospective employer.

I shall let you know what should be your average pay. Please let me know your field of engineering - Automobile? Production Engineering? A Diploma or BE/B.Tech course? University & College. Which industry are you working in? Which domain are you working for? Do you have the role of communicating with your client?

Please let me know that - I can help you find what should be your average salary as per Industry Standards. Also - please let me know the location you are currently employed. Location also matters.

Please note that a tier one company and tier 3 or 4 company will really have a vast difference in salary as well as the quality of people. Sometimes good people get stuck with tier 3 or 4 companies. In that case, it's no harm in looking for a better company with better pay. In my previous company - we provided a candidate close to a 60% hike in salary to match our paying standards. Only because - he was excellent in the technology we were hiring him for, and we did not mind that he was from a tier 3 company - all that mattered was to ensure that he does not leave us because of unmatching salary differences.

It is a common practice to issue a relieving letter, salary certificate. Some companies combine both letters in one, some give that as two different letters. However - even if you are selected by a good reputed employer, they will for sure ask for your previous pay slip or salary proof. I don't want to comment if you are looking to join another company that has no policies in practice and never mind employing someone without any proof of their previous salary or any references.

Think positive. Don't think that you will still land up in a low-paying job. You will get a low-paying job only if you nod your head for the pay.

Hi Monica,

As you said, I feel exactly the same as if the letter is fake and any other employer may not believe it is original. Thanks.

Hi Ash,

Thanks for your useful comments. I'll definitely try to forget my past. I have a B.E. in Computers and six years of experience. Currently, I work as a System Engineer for an MNC and daily interact with US clients for level 3 support. Kindly suggest to me what salary would be wise for me.

Dear Hemant,

Thanks for the information. Here is what I can help you with based on the info you have provided. Though you have not informed about your college/university, location, and more about your company, like the turnover, whether it's a Fortune 500 or 1000 company.

But based on your information that the company pays you really cheap, I assume it's not in the Fortune list.

Information below is based on 3 options: (just for your basic info)

Tier 1 (Top reputed companies, metro city, software - any) Tier 2: (Average reputed companies, not a metro city, software - any) Tier 3 (Low profile companies, non-metro, software - any)

Please note that the information is just for you to get an overview - the pay scale is an average range mentioned, and some companies may not even pay that much, or some companies may pay more than that. It's an AVERAGE PAY in each tier.

Tier I:

Average Pay: 5.68 L Lowest Pay: 4 L Highest Pay: 7.9 L

Tier 2:

Average Pay: 4.2 Lowest Pay: 3.25 L Highest Pay: 5.04 L

Tier 3:

Average Pay: 2.75 Lowest Pay: 2 L Highest Pay: 4 L

The above information is based on the salary mentioned on resumes on Naukri. Some people also have a tendency to overestimate their salary. But I guess, not much of a deviation should be there (+ / - 10%).

Thanks!

Hi Ash,

Thank you very much for the information. I am working in Mumbai at a reputed financial technology provider, which I believe comes under Tier 1 but unfortunately, I am receiving the lowest pay. I need to work on improving this situation.

Thank you.

Alright, Hemant, so it will not be an issue for you if you have the salary/CTC mentioned in your relieving letter. After all, that is the reason you are moving - not being paid better. Good luck for your job hunt. Try Nomura... I have heard it's a good company, as far as pay is concerned.