Short Answer: None
Long Answer: Definition of CTC, Example, Warning and Suggested Actions below.
A cost to company or total cost package is a method used by an employer to remunerate an employee based on a package, being the guaranteed sum of money the employer will spend on that position. The guaranteed sum is allocated by the employee to earnings, benefits, allowances and company contributions, subject to various regulations.
The package will include:
• Travel allowance
•Company contribution to medical aid
•Company contribution to provident fund and
When joining a company or accepting a conversion to total cost packages, don’t automatically expect these benefits:
• Tax compliance and efficiency
• Internal pay equity
• Lower economic risk
• Flexibility and choice
• Higher Net Take Home Pay
1. Before you sign on the dotted line, make sure that you understand the short and long term financial implications for your pocket. Or it could end up being a total(ly) cost(ly) package for you!
2. If you are in doubt, get professional advice and renegotiate your package.
Do you have a horror CTC story to share?