Hello Everyone ,
This is my Second request to you all. I am desperately looking for the answers for these :
1. If anyone can update me on that when a employee (starting from an Executive to the Top Management ) joins a new company after leaving the old one, then what components of his salray are considered by the new company while giving him a raise/ hike in his salary?
2. Are the concepts of CTC & Gross salary same or there is/ are some underlying differences between them ?
If anyone can update me in simpler terms .Waiting to hear from you people.
Thanks
:roll:
From India, Delhi
10This is my Second request to you all. I am desperately looking for the answers for these :
1. If anyone can update me on that when a employee (starting from an Executive to the Top Management ) joins a new company after leaving the old one, then what components of his salray are considered by the new company while giving him a raise/ hike in his salary?
2. Are the concepts of CTC & Gross salary same or there is/ are some underlying differences between them ?
If anyone can update me in simpler terms .Waiting to hear from you people.
Thanks
:roll:
From India, Delhi
Hi Prashant
just wanted to help you out with whatever little understanding I have. I also believe someone else has sent this reply earlier , anyway let me repeat it for your convenience:
Net Salary(cheque amt) + Employee PF = Gross Salary
Gross Salary + Employer PF Contribn = CTC
Let me also add here that there are other annual benefits that you may include in CTC if you are giving them to your employees.
About your first query, I am confused a little - what I know is that every company has its own salary structure and once the net package or ctc has been finalised, you make a package as per your policies. Incase of extra perks - that again has to be discussed during negotiation stage itself.
Hope I have been able to help you out a little.
All the best
Pooja
From India, Delhi
just wanted to help you out with whatever little understanding I have. I also believe someone else has sent this reply earlier , anyway let me repeat it for your convenience:
Net Salary(cheque amt) + Employee PF = Gross Salary
Gross Salary + Employer PF Contribn = CTC
Let me also add here that there are other annual benefits that you may include in CTC if you are giving them to your employees.
About your first query, I am confused a little - what I know is that every company has its own salary structure and once the net package or ctc has been finalised, you make a package as per your policies. Incase of extra perks - that again has to be discussed during negotiation stage itself.
Hope I have been able to help you out a little.
All the best
Pooja
From India, Delhi
Hi Prashanth,
The Gross salary components should be taken into consideration for salary fixation. CTC is derived on gross + other annual reimbursements(Medical, LTA etc.) Generally, for salary negotiation purpose its discussed on CTC. Ultimately any HR person will talk on the lines of CTC so that he can save few thousands.
Regards,
Naveen
From India, Madras
The Gross salary components should be taken into consideration for salary fixation. CTC is derived on gross + other annual reimbursements(Medical, LTA etc.) Generally, for salary negotiation purpose its discussed on CTC. Ultimately any HR person will talk on the lines of CTC so that he can save few thousands.
Regards,
Naveen
From India, Madras
Hi Pooja ,
Thanks for the answers but still I think that there was some confusion remained. I will try to make you understand with help of an example.
Lets say for an example : You are an employee of some XYZ Co. as a IT Manager. You gave an interview with some other IT Co say ABC , they liked you & they want to hire you . Now my question was that while giving an offer to you to join their Co. ABC would definitely propose a particular hike or raise in your current salary so that you might be intrested in joining them . What I want to know that while calculating that hike/ raise in your salary which they would be proposing, what Comoponents of your current salary would they take into consideration while proposing the raise. Is it going to be (Basic Pay + HRA) or more things would be included in that as a standard items to calculate a raise/hike in your current salary?
Hope I would be more clear now .
Waiting to hear from you.
:roll:
From India, Delhi
Thanks for the answers but still I think that there was some confusion remained. I will try to make you understand with help of an example.
Lets say for an example : You are an employee of some XYZ Co. as a IT Manager. You gave an interview with some other IT Co say ABC , they liked you & they want to hire you . Now my question was that while giving an offer to you to join their Co. ABC would definitely propose a particular hike or raise in your current salary so that you might be intrested in joining them . What I want to know that while calculating that hike/ raise in your salary which they would be proposing, what Comoponents of your current salary would they take into consideration while proposing the raise. Is it going to be (Basic Pay + HRA) or more things would be included in that as a standard items to calculate a raise/hike in your current salary?
Hope I would be more clear now .
Waiting to hear from you.
:roll:
From India, Delhi
Hi
What I can tell you from my experience so far is that companies make offers on either gross salary or ctc rather than considering basic/HRA etc. the hike is given on the gross / ctc itself and then their own salary breakup is applied to it.
If anyone else ahs any other views on this, please do let us know.
Cheers
Pooja
From India, Delhi
What I can tell you from my experience so far is that companies make offers on either gross salary or ctc rather than considering basic/HRA etc. the hike is given on the gross / ctc itself and then their own salary breakup is applied to it.
If anyone else ahs any other views on this, please do let us know.
Cheers
Pooja
From India, Delhi
Hi ,
I agree on that but when a Co would be proposing a hike on a Gross Salary or on CTC there must be some base for that. On an average Industry Standard for a hike ranges from 20% to 40 % depeneding on negotiation & level of the job & sometimes goes more than that. But at the same time when a Co would be giving a hike of lets say 20 % on somebody's CTC or Gross Salary they definitely have to adjust that percentage in that persons salary.I want to know in what components of the person's salaray they would be adjusting this raise of 20 %.
Can anyone help ?
:roll:
From India, Delhi
I agree on that but when a Co would be proposing a hike on a Gross Salary or on CTC there must be some base for that. On an average Industry Standard for a hike ranges from 20% to 40 % depeneding on negotiation & level of the job & sometimes goes more than that. But at the same time when a Co would be giving a hike of lets say 20 % on somebody's CTC or Gross Salary they definitely have to adjust that percentage in that persons salary.I want to know in what components of the person's salaray they would be adjusting this raise of 20 %.
Can anyone help ?
:roll:
From India, Delhi
I am not sure if I understand the question correctly however if you are trying to hire someone from another company whether a competitor or other that has a great background and experience and ensure that they are on the "right foot" to join your company then would you not consider their salary at their former company?
So Mr. XYZ who works for ABC Co leaves to join 123Co - joins that company within the salary structure of that company - usally one has a Job Band/Width already established while recruiting as to the salary and the range is determined by the job description.
Experience, Education, Industry related experience is all taken into account to determine where in the range Mr. XYZ would fall into place
obviously if you feel that you need to retain him - instead of doing a salary increase would you not offer a signing bonus instead - with the restrictions of that? Otherwise you might have some discrepencies with salary structure and compensation ranges across the board - and levling issues.
Just some food for thoguht.
Cheers!
Rekha
From United States, Saint Louis
So Mr. XYZ who works for ABC Co leaves to join 123Co - joins that company within the salary structure of that company - usally one has a Job Band/Width already established while recruiting as to the salary and the range is determined by the job description.
Experience, Education, Industry related experience is all taken into account to determine where in the range Mr. XYZ would fall into place
obviously if you feel that you need to retain him - instead of doing a salary increase would you not offer a signing bonus instead - with the restrictions of that? Otherwise you might have some discrepencies with salary structure and compensation ranges across the board - and levling issues.
Just some food for thoguht.
Cheers!
Rekha
From United States, Saint Louis
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