I am working with a start up. For start up there are no much of a documentation. Now my take home amount is 30000, thats the amount I get in my bank account, plus I get cash reimbursement for petrol and mobile (there are no paper trail for this. Now I have few questions:
1. What is my CTC?
2. How should I negotiate with a company HR? Applied at a company and the HR is saying I am getting 360000 as CTC and they have some arcane rule that the hike cannot be more than 25%. So now he is quoting a figure of 450000.
I am not able to understand this because I checked some of the salary break-up calculators and it shows that if my CTC is 360000 then my in-hand would be in the range of 27000-28000 which is not the case here.
How should I bring this point to the HRs understanding.
Look forward to your responses.
From India, Mumbai
1. What is my CTC?
2. How should I negotiate with a company HR? Applied at a company and the HR is saying I am getting 360000 as CTC and they have some arcane rule that the hike cannot be more than 25%. So now he is quoting a figure of 450000.
I am not able to understand this because I checked some of the salary break-up calculators and it shows that if my CTC is 360000 then my in-hand would be in the range of 27000-28000 which is not the case here.
How should I bring this point to the HRs understanding.
Look forward to your responses.
From India, Mumbai
CTC is the total amount you would receive before the deductions. Its the complete amount, offered to you by the company in exchange of your services. The yearly CTC when divide by 12 is not what your monthly takehome would be , for the obvious reasons, that you have already discovered.
The calculation thats shows Rs.27000, is as per the normal calculation which includes the deduction such as Professional tax, PF and Income tax.
Your current employer is most probably not deducting any amount. Your monthly takehome is the lump-sum with the reimbursement, over and above it. This is not how salary is calculated in most of the firms. Infact your new employer should be able to identify this.
You need to confide to the HR of the new employer, about this entire absence of deduction by you current employer and support with the bank statements which shows the amount transferred . It may not offer the details to the amount paid, however, that explains your case. Please find a clearer understanding on what would be the takehome amount, in your new salary structure.
Rs.45,000 will have deductions and may have further conditions such as medical bills to be presented for the amount to be reimbursed .
Same for the travel bills. Please clearly understand, if you would be given any per diem before the journey or would it be reimbursed only once you submit the bills.
Mobile and other expenses , if offered might follow the same method.
These details are important as you may need to track your expenses and manage your savings.
Wish you all the very best !
From India, Mumbai
1856The calculation thats shows Rs.27000, is as per the normal calculation which includes the deduction such as Professional tax, PF and Income tax.
Your current employer is most probably not deducting any amount. Your monthly takehome is the lump-sum with the reimbursement, over and above it. This is not how salary is calculated in most of the firms. Infact your new employer should be able to identify this.
You need to confide to the HR of the new employer, about this entire absence of deduction by you current employer and support with the bank statements which shows the amount transferred . It may not offer the details to the amount paid, however, that explains your case. Please find a clearer understanding on what would be the takehome amount, in your new salary structure.
Rs.45,000 will have deductions and may have further conditions such as medical bills to be presented for the amount to be reimbursed .
Same for the travel bills. Please clearly understand, if you would be given any per diem before the journey or would it be reimbursed only once you submit the bills.
Mobile and other expenses , if offered might follow the same method.
These details are important as you may need to track your expenses and manage your savings.
Wish you all the very best !
From India, Mumbai
Dear,
As per my understanding your monthly CTC IS 30,000 Rs. The CTC means total cost to company incurred on an employee by the company and the net salary is what you get in your account/hand after necessary/obligatory deduction like PF, Professional Tax and income tax. As you said you are getting 30k in your account means your employer is not deducting anything from your salary which is a wrong practice.
The mobile and petrol reimbursement is a variable allowance which is paid to an employee by the company other than CTC. Please bring the same thing into HR's notice, so, that same can be rectified.
From India, Delhi
As per my understanding your monthly CTC IS 30,000 Rs. The CTC means total cost to company incurred on an employee by the company and the net salary is what you get in your account/hand after necessary/obligatory deduction like PF, Professional Tax and income tax. As you said you are getting 30k in your account means your employer is not deducting anything from your salary which is a wrong practice.
The mobile and petrol reimbursement is a variable allowance which is paid to an employee by the company other than CTC. Please bring the same thing into HR's notice, so, that same can be rectified.
From India, Delhi
Dear Anonymous
Make total of all the perks/heads and othe non cash benifits applicable to you.
BASIC+D.A+HRA+CANTEEN(FOOD)+CONVEYANCE+MEDICAL+INS URANCE+ENTERTAINMENT+PAID VACATION+P.F CONTRIBUTION BY COMPNAY+GRATUITY CONTRIBUTION+LEAVE ENCAHSMENT+OFFICE WARE ALLOWNACE+FREE ACCOMODATION+FREE EDUCATION+EDUCATION ALLOWNACE+INCENTIVES+GIFTS+BONUS+CASH AWARDS ETC.
This is your CTC. (pl. note this list is indicative only there may be other benifits available to you).
For negotiation X% rise is traitional approach..the more scientific approach is Market Valuemof Role Vis-a-vis competence of candidate.
Regards
Shailesh Parikh
Gujarat
India
99 98 97 10 65
From India, Mumbai
Make total of all the perks/heads and othe non cash benifits applicable to you.
BASIC+D.A+HRA+CANTEEN(FOOD)+CONVEYANCE+MEDICAL+INS URANCE+ENTERTAINMENT+PAID VACATION+P.F CONTRIBUTION BY COMPNAY+GRATUITY CONTRIBUTION+LEAVE ENCAHSMENT+OFFICE WARE ALLOWNACE+FREE ACCOMODATION+FREE EDUCATION+EDUCATION ALLOWNACE+INCENTIVES+GIFTS+BONUS+CASH AWARDS ETC.
This is your CTC. (pl. note this list is indicative only there may be other benifits available to you).
For negotiation X% rise is traitional approach..the more scientific approach is Market Valuemof Role Vis-a-vis competence of candidate.
Regards
Shailesh Parikh
Gujarat
India
99 98 97 10 65
From India, Mumbai
Dear Anonymous,
As mentioned by (Cite Contribution) and Meenakshi, your current employer is not doing the necessary deductions in your salary as per law. If your company is a startup comany has not got more than 15 employees, then the employer does not have to pay PF. But, PT(Profession Tax) and income tax deducitons will always be mandatory if you are a registered employee.
Thus, it is clear that your present ctc is only Rs.3,60,000/- per annum and any new employer will give a hike after considring that your present ctc is Rs.3,60,000/-.
Considering the 25% hike, your new salary will be Rs.4,90,000/-. Make the new HR to understand the same with proofs of your bank statements.
Regards,
Sudhindra.
From India, Bangalore
As mentioned by (Cite Contribution) and Meenakshi, your current employer is not doing the necessary deductions in your salary as per law. If your company is a startup comany has not got more than 15 employees, then the employer does not have to pay PF. But, PT(Profession Tax) and income tax deducitons will always be mandatory if you are a registered employee.
Thus, it is clear that your present ctc is only Rs.3,60,000/- per annum and any new employer will give a hike after considring that your present ctc is Rs.3,60,000/-.
Considering the 25% hike, your new salary will be Rs.4,90,000/-. Make the new HR to understand the same with proofs of your bank statements.
Regards,
Sudhindra.
From India, Bangalore
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CTC Calculator.xls