How is CTC calculated when determining the salary in India? If the CTC is Rs. 6 lakhs per annum, does it mean that it includes all the benefits such as health ins., vacation, etc?
DIO
I think you are referring to the article in the ET.
CTC is the total cost the company has to incur when you are in their employment. This includes your salary, perks, club fees, car and driver, paid vacations - everything the company pays to you directly or indirectly for your benefit.
When the amount is as low as 6 Lacs p.a. the CTC would normally have a salary, HRA and conveyance. I doubt if that that would include club fees or driver allowance.
Quote:
Orginally posted by desi in ottawa
How is CTC calculated when determining the salary in India? If the CTC is Rs. 6 lakhs per annum, does it mean that it includes all the benefits such as health ins., vacation, etc?
DIO
It also includes company's contribution to your Provident Fund account. If you are being paid conveyance for going out on company work on a per km basis, that is separate. Other travelling allowances would also be separate.
Rgds.
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The CTC is estimated in terms of Total company spending per employee.
But there are two different angles to look at this; let us discuss;
Cost(s) towards Non-Revenue generating employees;
Examples of these are Accounts/ Administrative /HR staff etc.
where there is no direct revenue out of these people to the company.
So this is a pure expense for the company and a Direct cost as such.
(which is of course required in order to manage the company activities)
Cost(s) towards Revenue generating employees.
These are mostly Sales people. Reps, Managers. CIOs. CEOs etc,
and such other employees directly contributing to the revenue of the Company.
Most Companies even treat these employees as Cost/Profit centers since the Cost(s)
spent/ incurred on the these can be directly identified and appropriated out of the
revenues generated by these individuals.
These costs include all overheads over and above the regular Salary and perks they draw.
including but not limited to traveling/ conveyance and all other business related expenses.
what I meant to say is in most cases the Cost to Company (CTC) are estimated for all revenue generating sources/employees.
And in today’s world, IT consultants are another case in this category. where total costs are estimated.
Your thoughts... please
Still I am not getting it right. If the salary is Rs. 6 lacs CTC, then what would be the monthly salary? Say Rs. 50,000 per month CTC, then how much gross the pay cheque would be per month?
DIO
Quote:
Orginally posted by desi in ottawa
Still I am not getting it right. If the salary is Rs. 6 lacs CTC, then what would be the monthly salary? Say Rs. 50,000 per month CTC, then how much gross the pay cheque would be per month?
DIO
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