Is It Okay to Include Bonus and Shift Allowance in My CTC When Applying for a Job?

Hi, I wanted to know if I can mention my gross pay, which includes (CTC + BONUS + FIXED SHIFT ALLOWANCE), while applying to a new company. Is it correct to mention the above three components clubbed together as CTC to the new company that I am applying to?

For example, my CTC is 100, but the yearly bonus (variable) is 12.5, and my shift allowance is 10 (yearly). So, is it fine to mention my total CTC as 100 + 12.5 + 10 = 122.5 to the new company that I am applying to?

Smart Ways to Present CTC to a New Company

What would be some smart ways to put it in a nice way to the organization that I would be applying to?

Understanding CTC Components

CTC stands for Cost to the Company, so all payments and facilities extended to you are a part of it. Bonuses and Fixed Shift Allowance are components of CTC and should be taken into account. Additionally, the employer's share of EPF, annual gratuity, premium, the value of food concessions, etc., can also be included. For more detailed information, you can approach your HR department.

Hi KK!HR, can I still mention shift allowance and bonus to the new company while negotiating, even though they are not included in my CTC currently?

Statutory Bonus and Shift Allowance are not considered as part of CTC, as the bonus is dependent on your salary (Basic + DA). Once this limit is exceeded, you will not be eligible to receive a bonus. Shift allowance is an additional benefit for employees that only applies to those who work night or evening shifts for a specific time period. Once your regular office hours change, you will no longer be paid the allowance.

Therefore, it is advisable not to add bonus and shift allowance to the CTC.

Thanks

Understanding CTC (Cost to Company)

CTC - Cost to Company. It is the amount any employer spends on any particular employee, usually for a year. It may be actual (last year's data) or it may be projected based on notional data. If an employee is covered under ESI, which may discontinue after exceeding the salary beyond 21,000/- per month (as of date), and after completion of the contribution period, it is also part of CTC.

Therefore, if we calculate the actual CTC for any year, it should be based on the actual data of that year, which includes everything the organization spent for the employee - statutory bonus, night shift allowance, Employer ESI Contribution, etc.

Projected vs. Actual CTC

But if we calculate projected CTC, it cannot be accurate but a projection to get a feel. For organizations that are paying variable DA (may be revised monthly, quarterly, half-yearly, or yearly) will affect the CTC figure. Actual CTC is always an accurate figure, and projected CTC is variable. CTC is a management tool to get an idea regarding the overall employee cost, fitment of new recruits based on internal comparison, etc.

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