Dear Colleague,
You have raised a debatable query whether the cost equivalent to 30 days authorized leave ( payment for non- working days) should form part of CTC.
If you look at from employer's point of view , everything that is spent on employee is a cost to the company. For example, subsidized /free food expenses, free transport , all welfare related expenses. But traditionally and for whatever reasons everything is not counted in CTC and such cost items which are related to welfare expenses including cost of leaves are excluded from the reckoning. Here it is not question what is right or wrong but predominantly what is largely being currently practiced which perhaps may undergo change in future.
Therefore, to include the cost incurred for 30 days' leave is not in line with current widespread industry practice.
Regards,
Vinayak Nagarkar
HR-Consultant