I am working as an HR Executive in an IT company. There is a question that has arisen in my mind related to CTC (Cost to the Company). I want to ask, what is the basic difference between Indian CTC and Foreign CTC? Can anyone help me out?
Thanks
From India, Mumbai
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From India, Mumbai
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Hi Rini,
Though I cannot understand the reason or motive behind such a question, I would like to mention that CTC, as you are aware, is the cost to the company. Since you are in HR, you might be aware of various components that are included in the CTC and also that most of the components arise from the statutory compliance of that particular country or region. So, how can we compare the CTC of two different countries, knowing that the statutory compliance differs tremendously?
Regards
From India, Mumbai
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742Though I cannot understand the reason or motive behind such a question, I would like to mention that CTC, as you are aware, is the cost to the company. Since you are in HR, you might be aware of various components that are included in the CTC and also that most of the components arise from the statutory compliance of that particular country or region. So, how can we compare the CTC of two different countries, knowing that the statutory compliance differs tremendously?
Regards
From India, Mumbai
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In addition to what Ankita has shared, the salaries differ in terms of structure and value. The differentials are way too high; hence, please discount the currency of the country. Education and certifications are valued differently. Hence, the pay philosophy changes. Most of the jobs are contractual. The benefits and retirals are significantly different.
You can easily find a direct comparison of salaries on Payscale.
I wish to discuss the differences in the data you find. Thank you once again!
Regards
From India, Mumbai
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You can easily find a direct comparison of salaries on Payscale.
I wish to discuss the differences in the data you find. Thank you once again!
Regards
From India, Mumbai
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I am with (Cite Contribution) & Ankita Shah in believing that one learns ONLY by asking or enquiring. There's no other way out for anyone, including myself. And in fact, the BEST time for learning by enquiring IS NOW, especially when you are still early in your career. Once you gain experience, typical human psychology tends to impose limitations on people in terms of being open to learning, due to a sort of 'what will they think of me' syndrome or mentality.
Understanding Indian and Foreign CTCs
Now, regarding your question about Indian and Foreign CTCs, please note that the concept or practice of "CTC" is prevalent in very few countries, including India. Most countries follow a different salary concept—focusing on 'What's my In-hand?'. Apart from the factors mentioned by other members such as exchange rates, cultural differences, etc., the general human psychology in those countries is more focused on the present rather than the future (which is one reason why families in the West may face financial difficulties during recession periods).
For example, in the USA, if an employee is hired at US$40K per annum, in addition to the salary, the legal practice is to include the 401k Plan amount in the employee's salary, with the employer matching that amount—similar to PF in India (for retirement planning and emergencies). Additionally, most employers provide medical insurance payouts. However, when asked about a person's salary, the figure given is usually 40K per annum, with the other benefits being 'taken for granted'.
In summary, this would be the essence of the answer to your question. I hope this information is helpful.
Regards,
TS
From India, Hyderabad
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Understanding Indian and Foreign CTCs
Now, regarding your question about Indian and Foreign CTCs, please note that the concept or practice of "CTC" is prevalent in very few countries, including India. Most countries follow a different salary concept—focusing on 'What's my In-hand?'. Apart from the factors mentioned by other members such as exchange rates, cultural differences, etc., the general human psychology in those countries is more focused on the present rather than the future (which is one reason why families in the West may face financial difficulties during recession periods).
For example, in the USA, if an employee is hired at US$40K per annum, in addition to the salary, the legal practice is to include the 401k Plan amount in the employee's salary, with the employer matching that amount—similar to PF in India (for retirement planning and emergencies). Additionally, most employers provide medical insurance payouts. However, when asked about a person's salary, the figure given is usually 40K per annum, with the other benefits being 'taken for granted'.
In summary, this would be the essence of the answer to your question. I hope this information is helpful.
Regards,
TS
From India, Hyderabad
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CTC Comparison 5 Lacs (Current & Proposed).xls