Are Incentives A Part Of CTC?

Hi Guys...
I work for a software co as BD. People in Sales have incentives based on performances. Are incentives part of CTC?
I have recd an offer from a company where they have given some hike in my fixed ctc..
but most of the hike is given as Incentives..
The offer states..
Fixed pay .. Say 200,000.00
Incentives...say 100,000.00
Total ...............200,000.00
* Incentives are paid on achivement of targets...
They Only give the total figure as Fixed pay .. looking at this i have a doubt if incentives part of CTC?

HI
CTC include only
Basic
Hra
Special allowance
variable allowance
Company contribution to PF
COmpany Contribution to ESIC
that is Major component to count in CTC
Incentive is part of Performance based.

Make sure that the incentive proposed is an achievable one. Some companies propose huge incetive and put an un attainable target. Normally incentive is not the part of CTC. But some company include that also in the CTC to make more attractive to the employees.

incentives are not a part of ctc ,they are only motivating factor which a company wishes to give his employees

friends things are different in my company(godrej agrovet ltd) here incentives are included in CTC

It is part of the CTC so long the periodicity of payment is less than 2 months. This has the judgement of Supreme Court as has been clarified by Kerala High Court in United Breweries Ltd vs. ESI Corporation, 2003 LLR 272. The ESI corporation has also issued notificatiopn No-S-11/12/1/2002-Ins. IV Col. II dated 2-4-2003 to this effect.

Dear All,

Just thought of sharing my experience and view on HR salary fitments........No INCENTIVE IS PART OF CTC as long as it is PAID & COMPUTED as PERFORMANCE LINKED....rather considered as VARIABLE PAY.

Also being HR professionals or HR Practitioner or HR aspirants suggest not to take any PARTICULAR companies EXAMPLE as they are GOVERNED by different REGULATORY guidelines depending on their type of COMPANY (e.g->PRITAVE LTD, PUBLIC LTD etc) NATURE OF BUSINESS, AREA OF OPERATION, LAW OF LAND which are some factors governing payouts....also like MANUFACTURING, SOFTWARE, BPO/ITES, BANKING etc.

Apart from

BASIC

HRA

CONVEYANCE (restricted to Rs. 96000/- PA for TAX exemption)

LTA (Non Taxable for 2 yrs in a row of 4 yrs)

PF Gratuity

Superannuation(Plz read separately if not sure)

**Company might PAY UNDER ANY HEADING-Provided that would be TAXABLE depending on CTC.....!! Be it

Special Allowance

Executive Allowance

Loan Allowance

Supplementary Allowance

However if that is not linked to PERFORMANCE and just paid in monthly then SALARY ANNEXURE should be referred with SALARY SLIPS to COMPUTE actual AMOUNT DRAWN.

Rgds

MBHR

Hi Guys,
CTC means cost to the company. So any cost incurred on an employee is a part of CTC. It is only that how you present the salary tructure that matters.
Basic salary structure includes only the following:
BASIC
HRA
CONVEYANCE (restricted to Rs. 96000/- PA for TAX exemption)
LTA (Non Taxable for 2 yrs in a row of 4 yrs)
PF
All the above components forms the gross salary.
And incentive are variable pay and not inclueded in GROSS SALARY, but it is definitely a part of CTC.
Thank you,
Vidhya

Hi Deb,
Can you please detail me on this. I mean; a little sopport document links maybe.
Regards,
Soumya Sen

HI Vindya,
Good to knw u explained this beautifully and pretty much replica of what i wrote....!:)
Now assuming an employee has GROSS of 278,000/- as CTC however quoted in the ANNEXURE OF SALARY STRUCTURING - Incentive (having slabs- Kindly read separately), Higher Slab - 75K per Quarter (That implies - 75,000/- X 4 = 300,000/- PA - Performance Linked)
Does that IMPLY the PERSON is @ 278,000/- GROSS + 300,000/-(Variable Pay) = 578,000 as CTC.
Kindly check and ENLIGHTEN US ALL.
Your enlightenment awaited.
Rgds