Understanding CTC in Indian Industries: What Benefits Can Be Included for Employees?

Can someone confirm what all can be included in CTC which we generally offer to the employees as per prevailing practices in Indian Industries? Can we include Mobile Phone expenses, Medical Reimbursement (which is 80% of the actual routine expenses on medical grounds as per the Medical benefit policy), Life Insurance Premium Amount, Indicative Incentive Amount, etc.

How can actual incurred expenses by an employee be included in the CTC? It would be more appropriate to provide such allowances within the CTC.

Please let me know if you need any further assistance.

Dear Sarwin,

As rightly said by Mr. Prashant Ingawale, if you are providing benefits to the employee as an allowance on a monthly or annual basis, then you can include it as a part of CTC. However, please ensure to show only the amount that has been paid to the employee, not the amount that you may potentially pay. For example, do not include the gratuity amount as part of CTC because it is only applicable after 5 years of service.

Thank you.