Salary Increments in the Private Sector: Is It Based on CTC or Basic Salary?

Dear Sir, please guide me on whether the increment in the private sector is calculated based on CTC or basic salary.

Regards, Amod

Dear Amod,

Increment is calculated on the current CTC.

Regards,

Dilip

Dear Amod,

It is calculated based on the CTC basis. However, there can be variations; for example, unionized staff. For unionized staff, it is completely based on the terms of the agreement with the union, and for non-unionized staff, it can be CTC-based.

Thanks

Increment is always calculated on CTC (Cost to Company).

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It depends on the practices followed and the terms of appointment of the firm. Increments, both on Gross and CTC, are common.