Hi,
I recently transitioned to company payrolls after completing my probationary period. As I am deeply interested in all HR practices, I make an effort to gather as much information as possible about the various practices implemented by my employer.
Upon reviewing the communications shared regarding my transition, I came across terms like TCC and Compa Ratio. Could someone kindly explain the meanings of these terms to me?
I have gathered that any employee salary increments in this scenario were based on TCC and Compa Ratio. My ratio was approximately 98.7%, while another individual had a ratio of 104%. Does this imply that I received a smaller increment? How is this percentage calculated, and how does it influence employee salary decisions?
I would greatly appreciate a prompt response to this query.
Thanks and Regards,
Parichay Dewan.
From India, Mumbai
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I recently transitioned to company payrolls after completing my probationary period. As I am deeply interested in all HR practices, I make an effort to gather as much information as possible about the various practices implemented by my employer.
Upon reviewing the communications shared regarding my transition, I came across terms like TCC and Compa Ratio. Could someone kindly explain the meanings of these terms to me?
I have gathered that any employee salary increments in this scenario were based on TCC and Compa Ratio. My ratio was approximately 98.7%, while another individual had a ratio of 104%. Does this imply that I received a smaller increment? How is this percentage calculated, and how does it influence employee salary decisions?
I would greatly appreciate a prompt response to this query.
Thanks and Regards,
Parichay Dewan.
From India, Mumbai
Acknowledge(0)Amend(0)
Hi,
Theoretically speaking, Compa Ratio gives the relationship (ratio) of an individual's salary to the midpoint of his present band/grade. A compa ratio of less than 1 (or less than 100%) means that he's paid lower than his band's midpoint (average).
TCC (Total Cost to Company) would mean a sum of fixed pay and variable pay. Fixed Pay consists of total guaranteed cash (base salary + cash emoluments) + Conveyance + Loans + Housing + Retirements. Variable Pay consists of performance-based bonuses/training costs, etc.
Regards,
Dheeraj 🌟
From India, Calcutta
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3Theoretically speaking, Compa Ratio gives the relationship (ratio) of an individual's salary to the midpoint of his present band/grade. A compa ratio of less than 1 (or less than 100%) means that he's paid lower than his band's midpoint (average).
TCC (Total Cost to Company) would mean a sum of fixed pay and variable pay. Fixed Pay consists of total guaranteed cash (base salary + cash emoluments) + Conveyance + Loans + Housing + Retirements. Variable Pay consists of performance-based bonuses/training costs, etc.
Regards,
Dheeraj 🌟
From India, Calcutta
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Creating a Competitive Salary Structure.doc
Salary Structure.zip