Hi Seniors, Is Joining bonus a part of CTC or is it given over & above the CTC to make a candidate join as soon as possible? Thanks Shy
From India, Mohali
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From India, Mohali
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To get the service of a selected person as soon as possible, some companies may offer such a candidate the option to pay his/her unserved notice period with their previous employer. This allows the candidate to join the new company by paying an amount in lieu of the notice period.
Consideration of Notice Period Payment
Under these circumstances, we should not treat this amount as part of the CTC, as it will be incurred by an employer prior to the joining of a new employee. Therefore, it may be considered as recruitment expenses along with other general expenses but not as CTC of such an employee. This is my opinion only, and I do not have detailed information on this matter.
Regards
From India, Hyderabad
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55Consideration of Notice Period Payment
Under these circumstances, we should not treat this amount as part of the CTC, as it will be incurred by an employer prior to the joining of a new employee. Therefore, it may be considered as recruitment expenses along with other general expenses but not as CTC of such an employee. This is my opinion only, and I do not have detailed information on this matter.
Regards
From India, Hyderabad
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What if we are okay with his one-month notice period and, just to make an alluring offer, we are giving him a joining bonus, which will be paid to him along with his one-month salary? In that case, should it be a part of the CTC? I just want to know what the general trend in companies regarding this is.
Thanks,
Shy
From India, Mohali
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Thanks,
Shy
From India, Mohali
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No, we cannot include it as part of CTC. This is because certain allowances/contributions of the employer, which are payable to an employee as part of their salary or wages, such as PF, ESI, and Gratuity, are considered part of the CTC of an employee as they are of a recurring nature. For example:
Salary CTC Components
- Basic
- VDA
- HRA
- Conveyance Allowance
- Washing Allowance
- Any other Allowance
- Gross payable
- Employer contribution of PF
- Employee Contribution of ESI
- Gratuity
- Ex-gratia/Bonus
- Total CTC
Therefore, expenses incurred by an employer upfront before the joining of such an employee cannot be classified as part of the CTC.
Regards
From India, Hyderabad
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Salary CTC Components
- Basic
- VDA
- HRA
- Conveyance Allowance
- Washing Allowance
- Any other Allowance
- Gross payable
- Employer contribution of PF
- Employee Contribution of ESI
- Gratuity
- Ex-gratia/Bonus
- Total CTC
Therefore, expenses incurred by an employer upfront before the joining of such an employee cannot be classified as part of the CTC.
Regards
From India, Hyderabad
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It is one time lumpsum payment. can’t be included in CTC structure. Pon
From India, Lucknow
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From India, Lucknow
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Joining Bonus can not be include in CTC calculation..Its a one time payment..
From India, Vadodara
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From India, Vadodara
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Understanding Joining Bonuses
Some companies are offering joining bonuses, which are a one-time payment not included in the CTC. Joining bonuses are typically offered when a candidate is exceptional, and the company wishes to recruit them without disrupting the existing structure and current employees of the organization.
Regards,
J.L. Trivedi
Ahmedabad
From India, Ahmadabad
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Some companies are offering joining bonuses, which are a one-time payment not included in the CTC. Joining bonuses are typically offered when a candidate is exceptional, and the company wishes to recruit them without disrupting the existing structure and current employees of the organization.
Regards,
J.L. Trivedi
Ahmedabad
From India, Ahmadabad
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