How Do Companies Decide Managerial Salaries? Insights on CTC and Negotiation

Hi,

Could anyone please tell me how a company decides or fixes the salary of managerial-level positions? One of my friends is currently working in an MNC and has been offered a good package by another company. I would like to know, when a company decides the pay package keeping in mind the CTC, does it take into account only the basic pay or the entire gross salary? I mean, does the CTC breakdown include only the basic or the gross salary because in the case of marketing, incentives are quite significant.

This information will help in salary negotiation.

Waiting for your expert opinions and replies.

Thanks in advance.

Regards, Agnes

Dear Agnes,

CTC stands for "Cost to the Company" basis formula, which includes each and every expense of the employees. However, if the employee is working on a target basis, then incentives and other earnings will be separate from the CTC.

Nitin

Hi all HR members,

Please help me out with the salary break-up. I want to know how salary is calculated and how the package is decided. Please provide a simple way to calculate anyone's salary with an example and calculation. Your assistance is much appreciated.

I also want to know about compensation and fringe benefits.

Thank you,
Vaishali