How to calculate ctc?
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Answer:
Hi Khurshid, CTC or Cost to the Company details will be provided to you by the company you work for or planning to join. It includes various components - from fixed components like basic salary to the variable ones like performance bonus and other benefits. Every company has its own break up for the CTC, and how your company divides the total compensation will reflect in your monthly salary and also your job offer letter. Yes, there is a overall structure to the CTC package, as it will include definite components, but how much is allotted to these varies. Here are some articles that you'll find informative in this regard: http://info.shine.com/Career-Advice-Articles/Salary-Negotiation/Understanding-components-of-your-salary/1244/cid27.aspx http://info.shine.com/Career-Advice-Articles/Salary-Negotiation/Throwing-light-on-the-variable-component-of-salary/4164/cid27.aspx Hope this was useful!
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Other answers
CTC = cost to company. it is amount that any company pays to individual employee for employing services provided by the employee to the company. there are three things i feel that determine your CTC. 1. your profile. 2.company profile. 3. job profile lets talk about YOUR PROFILE suppose you are an MBA with lets say 2 years of work experience. now for calculating your ctc gives points to all the academic and professional activities you have so far done. just ask yourself what salary you would have expected had you been a high school pass out. lets say 1000 to 3000 bucks per month. then on go on adding bucks according to your qualification. ---for a high school graduate if its 1000 to 3000 per month ---then for college graduate it is 3000 to say 5000per month ---college grad + 2 years experiencs add some more now it 5000 to 8000 per month ---ok now you have mba degree with you add some more 8000 to 15000 per month ---mba with work experience (8000 to 15000) + 5000 more per month NOW YOU ARE AN MBA FROM BEST BUSINESS SCHOOL IN YOUR COUNTRY. that will add EXPONENTIALLY TO YOUR CTC. and so on. ----if you are from tier 1 b-school (premier b-school) company will have to pay more to utilise your skill than it would pay an MBA from TIER 2 b-school than to tier 3 B-school. other factors that matters are: 1. marks with which you have passed your qualifying exams. 2. your previous CTC if you have worked some where. 3. other relevant diploma,courses, relevant trainings, relevant certifications etc. you have with you. 4. your own calibre. adding all this you get a close picture of CTC you must be getting because of YOUR PERSONAL PROFILE. talking about company profile. COMPANY PROFILE 1. how big company is. big company for a specific job pay more than the other small companies. 2. MNC an MNC is found to be paying more for a job that other natioanal or local company pays. 3. how unique or important your job profile is in the company. in some comapany a software engineer have higher CTC because noone else in the company understands software as well as an engineer would do. but same engineer might have less CTC in a software company because there are many other like him and he is nothing unique. JOB PROFILE 1. how important is your job profile for the company. 2. what is your job location e.g. metro city, or small city or rural area etc. taking in all such factor into consideration one may reach fair enough close to his EXPECTED CTC. last but not least NEGOTIATION. OFTEN COMPANIES ARE OPEN TO NEGOTIATION IF THEY FEEL YOU HAVE QUALIFICATIONS THAT IT IS LOOKING FOR. ALL THE BEST. do let me know if this helped you. :)
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