As Many include this also into CTC Component. CTC or cost to company is what a company spends on you. RIGHT ? I was disappointed, Is that how hike Is calculated? Performance bonus. I can’t believe how the author came up with exactly similar points as you. also many first time job changers don’t realise they are also moving into higher tax slab. When they are disclosed they all contribute to some benefit enjoyed by employee. when we are moving to new company and for negotiation on salary we need to ask hike %age on fixed pay or on fixed pay+variable pay what we are getting in the previous company?? Its easier than calculating average of monthly take home amounts. Thanks to Jago Investor. HRA is decided by govt rules. KIndly guide me. Just because it does not translate into money in hand every month does not mean it is not a cost for the company. We also have a CA partner incase you want to explore that, Just fill in your details here and they will give you a complimentary call back, https://www.jagoinvestor.com/solutions/ca-services. This reminds me of the first placement where it took almost a day for me to understand the complex salary structure. X only. Thanks for sharing that. Enter the yearly gross salary, and percentage of basic salary, HRA, dearness allowance(DA), conveyance allowance, medical allowance, special allowance, professional tax and bonus, the net salary calculator tool will automatically fetch you the detailed salary breakup and net salary amounts. If you feel the Performance-linked component is very high (I’d call my CTC unacceptable if more than 20% of it is performance-linked component), feel free to discuss, negotiate, or at least understand how the performance is judged. Infosys shows a complete data sheet of three years including P&L data, growth ratios, balance sheet data, per share data and more. I would have preferred a card something like debitcard. Manish isn’t calling it unethical. In my case CTC was bumped up by 1.5 lacs ( in 2007 ) as relocation package, Sad part was I could get only what I could use. 1- Development of all solar products according to MNRE technical specification. I want to know if module lead at mindtree is really a lead position or just another name for senior engineer. CTC means cost of company .. its the definition .. How can you keep it out of it .. Can you somebody please help? Really nice article for the someone like me who is new to this CTC world. this is very very important . It was founded by two Danish engineers taking refuge in India. But yesterday i got my 2nd salary and i now know for sure that i have been one of the victims/fool. The “Very Happy” and “Only Happy” students left for the next phase of their life. Establish Code is an unique number assigned to your organization by Government of India and Extension Number is for the branch of your organisation if any. Thanks for sharing that . Just recently I have selected in one of the reputed Furniture Design Field Company, and when I request to HR to give me a minimum 30% hike as compare to my previous salary, they included Variable performance pay in as part of my salary and they are not offering any additional Incentive or Bonus to me and I really don’t have any idea that, is this the way company give the hike? How Employee Leaves would be calculated. one have to also take into consideration of the relocation expenses like rent, cost of living in the area etc. Yep, this is absolutely true. Take-Home Salary is the total salary that an employee gets after all necessary deductions are made. $12,700,000 – Stock Options See financial overview. How is it right? In the image below you can see how a job with low CTC can lead to a higher take home salary – all because the package with the higher CTC was inflated by injecting various components. In this way Company can Fool around on the Deduction and avoid paying the Tax. What do you think ? I am not the right person to talk on this point. Even the hike % varies from year to year. Emergency Medical Fund When I saw the #Salary breakup, it says 9 Lacs fixed in the… Liked by Ankit Bhatter. Please note that our salary calculator is calculating this for FY 2020-21 (Current Financial Year). Cost of company . Firstly, Why should I be bother how much I cost to the company? During the 2020 placement drive, Overall 249 companies had visited the campus for recruitment. The top students of my batch were placed at extremely high pay packages, and they were proud to have “cracked” it. In hand salary is what matters , CTC is a myth to shatter . That means my earlier CTC was including so much variable and other components, here its simple and straight. Can you please go through the below mentioned details and let me know the net take home each month. So basically it has cost me Rs22/- . People aspiring to join MindTree: Beware of this!!! Every year they are paying some percentage of VP component (which is 10% of CTC). Yes. But to get my variable payout I need to earn it…Like Apr-Mar is the Cycle to earn the points, The Payout will happen twice-Apr and Oct, I will get my variable payout in the month of Oct only (the points earn from the month Apr-Sep’15) …There will be nothing for Dec-Mar…I am so disappointed with this way of calculation. The part of the variable component ultimately paid to you could go down or up depending on your performance or some parameter that supposedly would be under your control. 60% of increment was added to PLI and again it will be chopped off in next year. Mindtree Test Specialist salaries are collected from government agencies and companies. Additional Benefits: Thanks for sharing that . While I understand that “variable” part should be also calculated with the pinch of the salt and Employee has to be more diligent in considering that. Would be really kind of you. 6. Dividing the CTC figure offered by them into a monthly number will get you very near to your take home salary – though it will obviously be lower. Clear & Standard set of Documents required for withdrawal of PF if employee quits. I am looking to move to US, preferably Seattle on a L1 Visa as salaries are higher in US than anywhere else. After going through them I am asking myself ” Can i safely conclude that inflated packages is more wide spread in the IT field then others ? 4) Here is the formula for calculating your net take home salary at MindTree: 5) Net take home = (Another company's same CTC without variable pay component) - 23% Ex: If your CTC is 6 lakhs, then monthly salary = 50,000 - 23% = around 38,000. Due to several factors esp. this bonus is provided every 3 months ), if you are satisfied with the real take home then u may not regret on your CTC, True . On Variable Pay if Employee Performance is 100% and due to bad decision by Management company performance is only 5% how the Variable pay would be calculated. In order to help the readers who is not able to identify establishment code of their PF account, here is the information for you. , Thanks for contribution ! The given below is the salary breakup calculator to know the individual amounts of your basic salary. Hi ali could you please tell me what is the current ctc of yours, Forgot to add the link for Meg’s compensation… the data was taken from one of the websites in the public domain – This is just a tactic and does not help anyone but the corporates. In case if they shut shop and if you ask for your Due share of settlement and speak in terms of Law they bargain with you stating that there would be a Negative feedback once you get into another job on background verification if you speak Law and escalate this issue. Its more impressive. Thanks for your reply. Telephone/Mobile Reimbursement (Payable half-yearly) 1,250 Done, Manish…..its awaiting moderation, lets see how fast they let it get posted . Investing in Mutual Funds vs Direct Stocks – Which is better option? I am looking for legal law link which tells what is the maximum limit of percentage company can define as Basic salary and HRA in pecentage.. My company is giving me 70% basic and 18% HRA and saying its as per law? According to Law only employees who work in Metro Cities Professional tax to be deducted. Hope some Court in india give direction on the components to be included in CTC. As per my understanding, Shift Allowance is paid separately and it also differs from shift to shift. I have seen people relocating and putting lots of money only to realise they have to relocate again . FEP = HRA + Other Allowances. Example:My organization recently gave me the privilege to work from home. If you are the one buying something, or in this case “asking / applying” for something; it is as much your responsibility to get your facts right. Annual Gross There is never a fixed rule for these things. So Inclusion of Variable pay in CTC itself is questionable as it depends on many factors which new joinee will finally come to know of.And also that appraisal will be donw only at the end of year they cannot include at the time of joining . I think this is one of the most important points raised here. There are a lot of thinngs i dont like about food coupons . Please advise on what an employee should quote (smartly) or ask for (I am keeping everything else constant – Designation, years of experience, role etc) considering the manipulations (difference may be a better word) in CTC that HR/new organization may do? However, that does not mean HP did not incur any other costs, or pay her based on her performance. Sports, Music, Movies, Travel, Entertainment, USA Fixed Income, Insurance, Social Security, US India Dual Tax, Cross country tax, FBAR, Indian Post Office Schemes & Fixed Income, Indian Mutual Funds, Stocks, IPO, PAN card, Kids Education - Abroad (School /College), Deloitte hyderabad: Manager salary range and band, Vanguard Managed Payout Fund - Retirement Income in US, If this is your first visit, be sure to Thats why I felt bad and cheated. POSTED BY During my campus placement days, I had few of my friends who were offered a CTC of 12 lacs p.a. I am not sure…But That is not wrong practice by companies…..CTC does mean Cost to the company…..so all the component which has been mentioned in article is called part of CTC only….Can not be counted seprately…. And the same goes with EPF as well… the company is making contribution on your behalf. Most of them get confused with CTC and assume they have got that much salary. Jagoinvestor is one of the best and most trusted online financial planning websites in India. I am confused about the hierarchy structure at Mindtree as they have 2 lead postion Module Lead and Team Lead. PUBLISHED ON: May 11, 2006 ... Elon Musk Responds With His Salary Breakup "Employees' Safety Top Priority": Twitter's Response After India's Notice; Finally, as you grow in terms of your position in the company, your pay becomes less fixed and more performance-linked. September 2, 2013 So On a second look I can see that there is Good component and then there is Bad component . And receive Per Diam But there are some annoying tricks as well. I shifted from a company with over 1lac employees to a small company with 100 employees. by the way , i currenlty working with good mechanical company, and the new company is one of top 4 japanese MNC’s (mechanical). It should ideally be given back to you only ! Even though i have consulted the HR regarding the take home part, He didn’t actually calculate the exact amount. Yes this is there since long time. Yes it was an IT MNC for those who are wondering. It may happen that your take home salary increases by very little, or in the worst case scenario, stays exactly where it was. Will do a story on food coupouns . Before accepting the offer ensure that you get your desired fix pay. This is just wrong . Mindtree Test Specialist average salary is $66,639, median salary is $65,064 with a salary range from $60,000 to $96,325. As EPF is launching the option to check the status of contribution Online. There’s a reason it’s called CTC – Cost to Company, and not IYP – In Your Pocket. Will there ever be an End to CTC…. It’s been only 3 months now since I joined this company and the worst part is that the take home I get now is almost same as that I was getting in my earlier company (though on paper the CTC is having 35% hike over the previous company CTC) . Annual Revenue $22.031 Bn, +5.3% YoY (+7.1% in CC). If got any opportunity there… . Apart from that Companies Deduct Professional Tax irrespective of location. They could have just reduced my CTC by an amount equal to employer share of EPF and could have paid it separately, but then my CTC would be lower– even though I would have been getting the same salary at the end of the day. In my recent appraisals my hike% was calculated on only fixed part not on my total CTC. But, how they can include Shift Allowance in my CTC? – Shift Allowance upto INR 115,500/- p.a. In my discussion with HR, I came to know that they have 16% of base package as their variable which comes around 2.8 LPA. Also once the employee is send Onsite per Diam comes into picture. Yea .. Hope you are searching for another job in Delhi. Total Reimbursements- 2,500, Retirals Lehman Brothers employees in india know this better. So, in other words, what is the ideal way to negotiate to ensure that one get ~30% hike on take home? In my salary breakup v.p included. The CTC (Cost To Company) numbers had fooled us! This article is a testimony to this saying . Maulik – The way to see is salary is not equal to CTC /12. When I work at my office, the electricity costs are borne by the company. Mindtree will provide Sales Analytic Solutions. $4,300,000 – Stock Don’t just look at the CTC and Take home salary. In simple way…cost paid by company for one particular employee…..All the components are some how given to employee only…. Good Luck. My Company have a Cycle for Variable Payout. But the ground reality is that 40% of that is just your floor rent (occupying 6×6 cubicle around Nariman Point, Mumbai will cost you a lot). It was never said or mentioned by HR at the point of negotiation. which is just impossible to digest. I joined a company recently n in my salary break up gross salary and ctc is same i.e, 30088 where 1800 is deduction of PF from employee side n same from employer side also. I am still travelling on the same boat! No , its not wrong as such , just that one should be aware that it happens like that . Basic- 16,042 I changed my job 2 months ago. If it is subject to your manager’s ratings alone, you have little to count on that money! I am little worried about the take home part. Wells Fargo Jobs 2020 for Freshers, Bangalore: Wells Fargo & Company (NYSE: WFC) is a leading global financial services company with $2.0 trillion in assets and offices in over 37 countries. As always, an excellent article Manish! Hr claims almost 90% variable pay is paid to employee even for an average performance. Hi Manish, This article is confusing and not educating. In my limited experience, pay packages offered by startups or smaller companies are more or less transparent, and artificial increases in CTC are limited. Remember you can only invest 1lac through 80C + Home loan exempt. its all fixed component. One should not see only “take home” but see various aspects involved. Special Allowance- 18,104 There is a Very Big Scam in making by the MNC by the name of CTC Govt is silent as they get more money in term of Tax. “, Yes, I would say IT sector is one , another is management or sales ! If this distinction is understood, there will be less confusion. What are the options available to claim this amount back as this is now a good sum as management does not respond nor refuses this amount. Enter the Basic Salary, HRA, and other income as listed on your CTC. This query belongs to CA domain, hence we are not the right people to comment on this issue. When I joined my first job (and the last one), I was very pleased to hear my CTC; it was amongst the highest packages on campus. I mean, some one else is paying for their bonus, EPF, stocks, right? It is in fact the cost borne by the company while you work there, making use of their premises… In case of PF withdrawal Maximum number of days Employee can wait before Suing the company for its failure. As I said , in small companies the CTC is the take home only ! Can you give me outline for it ? sound so confusing! I am not sure if you can fight on this, get a legal opinion on this matter. Stock Options again are not a regular payment source, however they do increase the CTC considerably. Thanks for sharing your detailed thoughts about this topic . What do you think ? Average Mindtree hourly pay ranges from approximately $21.45 per hour for Inventory Analyst to $108 per hour for Development Operations Engineer. Full Year Growth led by Life Sciences & Healthcare (+16.8% YoY), Europe (+14.6% YoY) and UK (+10.4% YoY)Full Year Net Income: $4.541 Bn, +1.1% YoY Q4 Total Contract Value: $8.9 Bn. It’s all based on the company’s performance or atleast that’s what they. Thats something we cant judge from our side. Per Month Salary (Breakup)--Up to 4.50 LPA Work Details & Responsibilities Must have experience in Electronics department. They may include a job description and salary details. This is what they have to focus on ! It could be sales, the number of clients you bring in etc. Trick 5 – Putting Large chunk of variable component in CTC. So is it good to have a VP as zero for 10.5 lacs package? Another simple trick employers play is to add your Stock Options to your CTC. How can employee know the EPF fund if parked in Trust. Global Communications Company ... We will have salary increment for 28% of our people in Q3 which will have an ... And I understand from the breakup which you gave that Digital is a large part of that revenue. (paid in 2 parts- every 6 moths)- Pro rata basis. 14. COMMENTS (184). I had one when I was changing job 4 years ago Total Gross Compensation: A+B+C = 1,100,000. It is yours to withdraw or transfer. Computation & Tax Implication on Indian Salary if a Employee goes Onsite. Sorry, I meant to say that I am not trapped in Variable pay. It is highly unethical. Conveyance Allowance – 2,000 Thanks for listing those . In this … So it is a legitimate cost to company. Larsen & Toubro Limited, commonly known as L&T, is an Indian multinational technology, engineering, construction, manufacturing and financial services conglomerate headquartered in Mumbai, Maharashtra, India. Required fields are marked *, Subscribe to FREE Video Course + FREE Ebook + Future Email Updates. They only offer big designation so that you have to accept lower designation at another company. Is there any organization which regulates this? My next year hike was far less than previous year CTC. A lot of things dont covert, but helps like EPF, Trasportation, good coupons etc . PLEASE RESPOND ASAP. AM22Tech’s Indian salary calculator is easy to use if you know your salary package. Let me check them ! http://www.usatoday.com/story/money/2014/02/03/hp-ceo-meg-whitmans-pay-package/5181305/. Did you talk to higher management about it ? Thirdly, Every employee should know how much he is going to take home (ofcourse after deductions, taxes etc). This is crazy as this company is supposed to be one of the most ethical companies in the world. 5) There are many more points but i am no mood to type so much .. but i guess if someone where to first hand experience and look at things closely will release food coupons are a big pain and sham. Secondly, Why should variable pay be part of the CTC when it is unknown because it is variable, then how would that be cost. This site uses Akismet to reduce spam. ---------------------------------------------, By i2d2 in forum USA Fixed Income, Insurance, Social Security, By Priyanka7 in forum Salary, CTC, Benefits, By inindia in forum Indian Insurance, LIC, ULIP Plans, By returning2blore in forum Salary, CTC, Benefits, To Chennai, Bengaluru, Tamil Nadu, Karnataka, R2I Build Social/Professional Network (Members Only). I agree, employee should be more cautious to review take home pay before joining. It would be nice if Govt can Bring in a policy where EPF can be transferred to PPF every month. Luckily I am trapped in variable pay :).. Good article to learn about CTC…. That’s very helpful comment for me! My CTC is 6.3 Hi, 2021 © Jagoinvestor.com All Right Reserved. I fell for the 1st point – Employer contribution deducted from CTC very shocking when I received my first paycheck. But, in the CTC breakups, they have not mentioned Shift Allowance and nowhere in the offer letter. But I never heard Aircon charges adding into CTC :-). If such awareness is there, I feel employees would be aware and such tricks can be known upfront. Yea .. Axis Bank Limited is an Indian private sector bank headquartered in Mumbai, Maharashtra. The best part is All the MNC have a Strict Code of Conduct rule not to share & Compare the CTC Details with fellow person (or) Any one, And many people follow this rule like Bible… Employee Contribution in EPF is taken for Income Tax rebate and Company Contribution to EPF which is included in CTC is not taken for Computation into Employee Income Tax rebate. @cbrcoder – Lets’s say if that particular employee is not required, insurance, food etc which is part CTC will be saved. Bonus and EPF are a cost to the company, and they end up in the employee’s pocket, sooner or later. Moreover, there is no measurement how it is 130%? 2- A project planner with expertise in planning, executing and leading. By that logic, they should also mention the electricity used by employee while at work, the water and rent charges per employee etc! I am sure some MBA guy in the recruiting company must have come up with this idea and I am also sure that this placement was in some MBA college. In this case naturally the terms of Company A are more favourable than B assuming everything else same. It was campus placement month, and although everyone declared that they wanted to do quality work once they were placed, they also harbored a secret desire to get placed at the highest salary. I fell for trick 2 while joining Accenture. 5 big mistakes investors make in their life & how it impacts them. 5000/- per month. Now, my laptop and monitors are plugged into the wall unit for 9+ hrs a day, 5 days a week has caused my monthly electricity bill to jump from 800+ to 2000+. It is totally irrelavant to me as an employee. Also if the EPF is with Trust, There are other charges included as Maintenance , Processing, etc.. If employee have 3o days of Leave balance at the time he quit the company how much money he can expect 30 day Gross salary (or) 30 Day Basic Salary. :-). 20. How can the employee know the TDS detucted from his salary have reached Govt tax dept every month there is no Mechanism to track. Some Companies even consider Gratuity(Which is payable 5 years from the date of joining),Super Annuation, EL Encashments as part of their CTC,Which makes the ctc figure looks big.But it is very clearly mentioned as Cost to Company not as Cost to Individual so we should have to work at take home pay and decide accordingly.I dont find any fault with the Employers,It is our duty to study the CTC structure in complete. Only that is in your control. Yup. can you explain your case ? | Testing Minds, http://www.usatoday.com/story/money/2014/02/03/hp-ceo-meg-whitmans-pay-package/5181305/, http://profit.ndtv.com/news/your-money/article-5-hidden-facts-about-ctc-your-employer-wont-tell-327114?pfrom=home-otherstories. I also went through all this when I got placed.
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