Are Incentives A Part Of CTC?

Hi gskumars

The term CTC means cost to the company. Whatever company is incurring on u comes in CTC.Total compensation includes the value of all the perks and benefits one gets from the Company in addition to ones salary.

Following are the components which comes in CTC.

FIXED SALARY

Basic Salary

House Rent Allowance

Company Leased Accomodation

City Compensatory Allowance

Special Allowance

Conveyance Allowance

REIMBURSEMENTS

MEAL COUPONS

Entertainment

Books/Periodicals

Education

House Maintenance Allowance

Furnishing Allowance

Dress/Uniform Allowance

Other Allowances

BENEFITS/ PERKS

Company car

Driver’s Salary

Maintenance and Petrol Expenses

Leave Travel Allowance

Canteen Subsidy

Telephone Expenses

Mobile Phone

Club Membership

Electricity/Gas

Servant/Gardener

Credit Cards

Furnishings/Durables

Holiday Facilities

Medical Reimbursements

Medical Insurance

RETIRALS

Provident Fund

Superannuation

Gratuity

BONUS

Fixed Bonus

Productivity Linked Variable Bonus(*)

Any Other Performance Oriented Incentive including Stock Option Plan(*)

The above mentioned components comes in CTC.

KATYANA

CTC=Cost to Company. That is what ever company pay to you in terms of cash will be considered as CTC. It depends upon company's pay policy that is how company will structure their pay. Regular bonus as per payment of bonus act is also CTC part. In that sence Performance bonus or productivity bonus will also to be concidered as CTC.
sc

Incentives are various types. Sometimes incentives based on overall performance Rating is a part of CTC, usually there is a maximum amount allotted.
On the other hand, Incentives based on Target specially sales is kept out of CTC.

Variable pay defenitely is part of CTC. The Variable pay is performance based. In my company it is a 5 point scale and the variable pay is paid based on the employees achievement of the mutually agreed objectives and ratings at the beginning of the financial year.
Hari

Dear Hari,
I am Naresh Jandial,RSM with Dr Reddys Labs,Incentives are not part of CTC,they are not must,Incentives are given only once Employee achieves his target or objective as set by Organisation.
Regards,
Naresh Jandial

The breakup of the CTC is basic salary, +deffered income+INCENTIVES BASED ON VOLUME SALES/REVENUES/ COMMISSION+YEARLY BENSFITS+PERKS IN CASH+PERKS IN KIND(mobile/house).So u have got a hike in one of the components.

Dear Mr. Joshi,
i wud request all of you to go thru Katyana's post; CTC includes both the fixed part and the variable part (Variable part is an incentive in a sense that you need to achieve a specific target to claim that amount).
CTC includes everything........perks, reimbursemnets, and other benifits given by an organization.
So the bottomline is: Incentives are v much a part of the CTC.
thanks and Regards,
Ayona