CTC Vs Take Home pay-------The war goes on
When the answer is pre decided there can be many questions that can fit in to justify the reply as right. The fixing of salary structure is similarly done in many companies. The employee stands his ground to state what should be his take home pay, the company equally firmly stands on its cost to company known as CTC. The permutation and combination of various components of the pay structure is then decided with the statutory compulsions of PF, ESI, Professional tax etc are also been put up with. The basic pay is kept low in order to reduce the effect of payments that are calculated as a percentage of basic. Special allowance, other allowance, house rent allowance, transport, medical reimbursement are the bifurcations that decide the take home. What is so ‘special’ and what is the ‘other’ factor of allowance is something hardly clarified by any company. Some companies also add bonus, gratuity etc that an employee gets only on completion of specific perio...