Dear All,
Wishing you and all the members of CiteHR network a Very Happy, Bright, Successful and Prosperous New Year - 2008,
For computing CTC at the time of negotiation for hiring a person Gratuity cannot be part of CTC, however, after completion of 5 years of service it is considered and posted as liability on the company in the Books of Accounts. So for any HR calculations too, after 5 years of service you may add it to CTC.
Rest all the payments / expenses borne by the Company for an Employee viz. Employer's PF share, ESI share, Statutory bonus (if applicable), Telephone reimbursement, Car maintenance and petrol expenses, canteen subsidy or any other fixed [payments / expenses paid in terms of remuneration is to be included in CTC.
Variable payments like incentives, festival /production bonus, sales incentives, tour expenses etc. are not part suppossed to be part of CTC.
Parwez