What Is Fixed Pay In CTC?

What is current CTC mean?

your current yearly cost to companyCTC means Cost To Company.

In general term we call it package.

Current CTC means your current yearly cost to company.

This includes your in-hand salary + PF deduction + TDS deduction + Any other allowance and deduction company providing/deducting from salary.

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Is 5 LPA a good salary?

Five lakhs for big and expensive cities wont be enough, definitely you’ll survive, but I am sure, since you are a fresher, you are looking forward to “living life to its fullest”, but at this salary, first few years will be dull. But don’t worry, “Satisfaction lies in the effort, not in the attainment.

How much is deducted from CTC?

Twelve per cent of the basic salary gets contributed from the employee for PF and another 12 per cent by the employer. So 24 per cent of the basic salary gets deducted.

What is fixed compensation in salary?

Fixed compensation refers to an employee’s regular gross salary or wages. … Fixed compensation amounts can be calculated for your employees, based on factors such as performance, region, and budget increases.

What fixed monthly income?

Fixed monthly salary = basic monthly salary + fixed monthly allowances. Basic monthly salary: This is payment that does not vary from month to month, regardless of employee or company performance, and regardless of whether the employee takes medical or personal leave. … Examples include fixed food and housing allowances.

How do you negotiate salary with HR?

Prepping for Salary NegotiationGather your salary data. … Stay calm during salary negotiation. … Examine your salary expectations. … Ask for their reasoning. … Negotiate. … Move beyond salary. … Maybe next year. … Walk away from salary negotiation.More items…•

How is fixed pay calculated in CTC?

How to calculate your take-home salary?Step 1: Calculate gross salary. Gross Salary = CTC – (EPF + Gratuity)Step 2: Calculate taxable income. Taxable Income = Income (Gross Salary + other income) – Deductions. … Step 3: Calculate income tax** … Step 4: Calculating in-hand/take home salary.

Is bonus a part of CTC?

Performance bonuses are also included in the CTC. These are variable components and you will be paid out a percentage of the bonus depending on your performance. … Some companies include gratuity in the CTC.

Which is better CTC or gross salary?

Gross salary is the amount after the EPF and gratuity are subtracted from the CTC. Basically, the remuneration paid before deducting the income tax, professional tax, and other deductions. It is inclusive of bonuses, overtime pay, paid holiday amount, and other differentials.

What does fixed pay mean?

Fixed pay is the fixed amount of salary that an employee gets at the end of the month whereas Variable pay is the incentive paid to the employee, monetary or non-monetary, based on their performance for the month. The ratio of fixed to the variable component, as a norm, varies based on the role the employee plays.

What is the difference between CTC and salary?

The CTC and take home salary of an employee vary as CTC is the sum total of direct benefit, indirect benefit and savings contributions. … Gross Salary: Subtract gratuity and the employee provident fund (EPF) from Cost to Company (CTC), the amount that you get is your Gross Salary.

Is 30 LPA a good salary?

30 LPA is awesome for a middle-class person. But more is possible for a person earning 30 LPA as an employee (because that requires near-mastery of the skill, in this case, software development).

Is PF part of fixed salary?

Take a look at your CTC break-up and you will find fixed heads like basic pay (usually 40-50% of the CTC), home rent allowance (usually 40-50% of the basic salary), gratuity, PF, and reimbursements such as car fuel and mobile bills, apart from variable components such as annual bonus and performance bonus.

What do you mean by CTC salary 18000?

Cost to company (CTC) is a term for the total salary package of an employee, used in countries such as India and South Africa. It indicates the total amount of expenses an employer (organisation) spends on an employee during one year.