Can Shift Allowance Be Part of CTC? Let's Discuss Its Pros and Cons

Including Shift Allowance in CTC

Can we include shift allowance in CTC? Would you like to include a shift allowance in the Cost to Company (CTC) package?

No, shift allowance is normally based on the number of shifts attended, and it's better to keep this separate from CTC. In general, there will be a different pattern for different shifts; for example, employees attending the First and General shifts are not generally eligible for shift allowance. The employees who work the Second and Night shifts will receive shift allowance.

Shift duties are to be rotated, and on public holidays and weekly offs, employees shall be paid overtime at double the rate. Hence, in general, companies do not pay shift allowance for these shifts. Sometimes, employees may mutually exchange shift duties.

If you include the shift allowance in CTC, regardless of their shift duties, employees will be eligible for that specific allowance, and it will become part of their salary.

Considering the above points, including the shift allowance in the CTC is not advisable.

Regards,
Kamesh

Thank you for the response. In my current company, there are two shifts: morning and evening. Both have shift allowances. I have received an offer from a new company that also follows the same shift basis, but they are not providing the allowance.

For example, if my Total Fixed Pay (TFP) is 3 lakhs plus a shift allowance of 200 per working day, it will be about 26k to 27k. However, without the shift allowance, the other offer is 3.4 lakhs, but the take-home will be 25,040.

So, can I include my shift allowance in demanding my package?

Yes, obviously. When finalizing your CTC, you should include all the benefits and then negotiate. For instance, in some companies, they provide subsidized food, which means that is a benefit for you. When you are negotiating with the new employer, you should convert the same into cash and include it in your CTC for negotiation.

I believe you got your answer.

Regards,
Kamesh