How much should be variable pay in CTC?

At junior level, variable pay ranges from 10\% to 15\% of the fixed pay. However, for employees working in the sales department, variable pay plus sale incentives can range from 30\% to 40\%.

What is variable amount in CTC?

Variable Salary means apart from regular salary. Performance Incentives and Special awards and Target achievement payments etc.. these payments made only after the Target achievements or successfully completion of projects etc.. . it is also a part of CTC.

Does CTC include performance bonus?

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. Gratuity is a sort of bonus that is paid out when you resign or retire from your company.

How do you calculate variable compensation?

How is it Calculated? Variable compensation as a percentage of total compensation is calculated by adding up all variable compensation and dividing that sum by total compensation.

What is fixed and variable CTC?

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.

What is the CTC in salary?

So, to start with, CTC stands for Cost-To-Company. That is, it is the amount of money the company will spend on a particular employee, in a particular year. The major part of the CTC is taken up by, as you mentioned, salary also called as Take-Home-Salary/package. 1. The fixed salary: 2. Reimbursements: 3. Retirement Benef Nice question.

Should I include variable pay in my CTC calculation?

If you have a separate budget for incentive pay then you can choose to show it separately. Generally, Variable pay is included in the CTC calculations of the company. Eliminate 80\% of your payments workload while reducing risk.

What is NETnet salary and how is it calculated?

Net salary, more commonly known as Take-Home Salary, is the income that the employee actually takes home once tax and other such deductions are carried over with. It refers to the in-hand figure that is calculated after deducting Income Tax at source ( TDS) and other deductions as per the relevant company policy.

What is the difference between CTCTC and gratuity?

CTC is the amount a company spends on an employee and Gratuityis what it pays to the employee at retirement. However, Gross Salaryis what a company pays to an employee before deductions and Net Salaryis what an employee receives after deductions.