Dear All,
A few days ago I was consulting a consultant with regards to CTC. He gave me a unique argument stating that leave granted (whether PL, CL or SL) should be considered as part of one's CTC. The reason he attributed to this was that each day's leave has a cost which is to be computed based on the ratio of one's earnings.
It would be so much useful if opinions of more experienced fellow members can be had on the subject, as I am yet to come across a CTC breakup which includes leaves as part of one's CTC.
Many thanks in advance.
Fj.
From India, New Delhi
A few days ago I was consulting a consultant with regards to CTC. He gave me a unique argument stating that leave granted (whether PL, CL or SL) should be considered as part of one's CTC. The reason he attributed to this was that each day's leave has a cost which is to be computed based on the ratio of one's earnings.
It would be so much useful if opinions of more experienced fellow members can be had on the subject, as I am yet to come across a CTC breakup which includes leaves as part of one's CTC.
Many thanks in advance.
Fj.
From India, New Delhi
Dear fruitjam
Welcome to CiteHR.com !!!
I hope you are aware that, in Law a particular object or concept, is interpreted as one that is "commonly understood", (or 'considered as such') by that term. At times, it may vary with usage or context.
For a recruiter or recruitment purpose, CTC is the Cost To Company in terms of salary and other perquisites actually paid (or spent on behalf) to the prospective employee.
For a company, anything that is spent on employees is a definite cost to company.
The ambient lighting in office, cost of air-conditioning, security, lifts, water coolers, office maintenance costs like paints, furnitures; canteen fixed costs like light, fuel, furniture etc. are all costs to company.
A good Cost accountant can easily calculate these costs and APPORTION them per employee to arrive at such Cost To Company.
Would you like to add all these costs and present it to the prospective candidate as his COST TO COMPANY ???
Since there are no laws or definition for CTC; the choice is entirely yours - whether to agree with the consultant and keep adding more to CTC; or to go along with the accepted norms and practice.
Warm regards.
From India, Delhi
1425Welcome to CiteHR.com !!!
I hope you are aware that, in Law a particular object or concept, is interpreted as one that is "commonly understood", (or 'considered as such') by that term. At times, it may vary with usage or context.
For a recruiter or recruitment purpose, CTC is the Cost To Company in terms of salary and other perquisites actually paid (or spent on behalf) to the prospective employee.
For a company, anything that is spent on employees is a definite cost to company.
The ambient lighting in office, cost of air-conditioning, security, lifts, water coolers, office maintenance costs like paints, furnitures; canteen fixed costs like light, fuel, furniture etc. are all costs to company.
A good Cost accountant can easily calculate these costs and APPORTION them per employee to arrive at such Cost To Company.
Would you like to add all these costs and present it to the prospective candidate as his COST TO COMPANY ???
Since there are no laws or definition for CTC; the choice is entirely yours - whether to agree with the consultant and keep adding more to CTC; or to go along with the accepted norms and practice.
Warm regards.
From India, Delhi
Exactly explain by Rajkumar no need to say anything. But adding little bit.
in fact this cost to company(CTC) term originated from western countries, and in Indian context before arriaval of these MNC's there were no such kind of idea, there were flate rate of remuneration. this is a fairy term, to cheat the employees in the show off high CTC's
The break up of salary structure is only to geting some Tax Benefit which is benificial for employer and employee. otherwise there is no definition of CTC no farmula for break up of CTC as per law. No provision No statute describe this CTC.
What ever you can add to your concept of CTC, no body is going to stop you, and no employee is going to object it because of so high rate of unemployment, if one object then you can get the other one.
This is totally social, economical,& mental harassment of an employee. Buy them with CTC like 6L/A per but in actual pay only 3.5L/A. rest spent on him in the name of CTC.
Most of company add Gratuity as a Cost to company & other factor.these are illegal means and i must say unfair labour practice.
in fact this cost to company(CTC) term originated from western countries, and in Indian context before arriaval of these MNC's there were no such kind of idea, there were flate rate of remuneration. this is a fairy term, to cheat the employees in the show off high CTC's
The break up of salary structure is only to geting some Tax Benefit which is benificial for employer and employee. otherwise there is no definition of CTC no farmula for break up of CTC as per law. No provision No statute describe this CTC.
What ever you can add to your concept of CTC, no body is going to stop you, and no employee is going to object it because of so high rate of unemployment, if one object then you can get the other one.
This is totally social, economical,& mental harassment of an employee. Buy them with CTC like 6L/A per but in actual pay only 3.5L/A. rest spent on him in the name of CTC.
Most of company add Gratuity as a Cost to company & other factor.these are illegal means and i must say unfair labour practice.
Hello Fruitjam,
My response is ditto like Raj Kumar & essykkr.
It's entirely upto you how to figure-out your CTC. And like essykkr mentioned, this norm came into India along with the IT boom [not exactly the MNCs] since much of the overseas IT business initially came for the USA.
Like for any choice, this too has the 'other side of the coin'. No wonder many candidates/applicants now ask for the actual Take-home figures before accepting or rejecting Offers. This only points very subtly to a sort of distrust/mistrust right from Day-1. If you care to analyse the reasons for the attrition rates we see today [compared to about 10-15 yrs ago], this is one major factor--and we see this phenomenon more in the IT sector.
Frankly I don't think this is a 'right/wrong' issue--& definitely not illegal. At the most we can say it's a 'fair/unfair' choice [vis-a-vis how thw HR explains this CTC to the prospective employee]. It's more to do with which option suits you or your organisation--and one needs to be prepared to take BOTH the pros & cons of the choice.
Rgds,
TS
From India, Hyderabad
My response is ditto like Raj Kumar & essykkr.
It's entirely upto you how to figure-out your CTC. And like essykkr mentioned, this norm came into India along with the IT boom [not exactly the MNCs] since much of the overseas IT business initially came for the USA.
Like for any choice, this too has the 'other side of the coin'. No wonder many candidates/applicants now ask for the actual Take-home figures before accepting or rejecting Offers. This only points very subtly to a sort of distrust/mistrust right from Day-1. If you care to analyse the reasons for the attrition rates we see today [compared to about 10-15 yrs ago], this is one major factor--and we see this phenomenon more in the IT sector.
Frankly I don't think this is a 'right/wrong' issue--& definitely not illegal. At the most we can say it's a 'fair/unfair' choice [vis-a-vis how thw HR explains this CTC to the prospective employee]. It's more to do with which option suits you or your organisation--and one needs to be prepared to take BOTH the pros & cons of the choice.
Rgds,
TS
From India, Hyderabad
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