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February 26, 2007

Cost To The Company - At Your Cost

ET triggered it for me. “MNCs pretty well know the youth has a special weakness for money……MNC’s compromise their hiring standards to lure talent…blah…blah...”

Nevertheless, this has what caught my attention “a Delhi-based firm includes the EMIs it pays for the laptop (provided to the employee) in the CTC..”

The victims won’t find it strange atleast.

I was first introduced to the concept of CTC (the well used but most abused HR term) when I got my first offer letter which included the PF contribution by the employer in my gross salary. In a way it seems reasonable, for whatever the employer contributes, is subject to our control. I am not fully convinced about it though. I could never imagine the extrapolation of this inclusion. There are several other inclusions which I know, you may don’t and vice versa. Interest subsidies for the loans availed, premium on life insurance/mediclaim policies, fees for club memberships, telephone, internet, blackberry bill reimbursements, credit cards, servants, gardeners, chaffeur, electcitity, gas, water et al. These are ofcourse, luxury, if we are given free of cost (read: without inclusion in CTC).

Those days are not far where you would find included in your so-called CTC the company’s monthly electricity bill, stationery cost (eraser included), tea/coffee/mineral water (don’t forget those extra sugar cubes) all those toileteries (including those toilet rolls which you seldom use), salaries of security guards (they are protecting you, right) and the maintainance staff. Also, if you are a techie, you won’t realise that you might have developed a software, sometime ago, for the company which it has now wisely used to allocate those shared expenses (like electcrity bill, etc) to the employees on a pro-rata basis. And if you are into testing, you might probably be testing the same software and fixing bugs. A faultless highway-robbery

Why MNCs rate themselves and popularise these as ‘benefits’ extended to the employees despite their inclusion in the employees’ CTC, and fuelling the fire by labelling themselves as employee-centric is a question still to be answered properly. ….

Realise that you are funding for yourself by working your own a** out.


Swaminathan said...

I have a nightmare to share with you. On one fine salary day(when the salary is credited to our bank account). I went to the ATM to draw money. ATM said not enough balance. Just to check the status I took a mini statement, wherein there was a debit in my account for a sum equal to my one month salary.

I went to my HR, who invited me with a sweet smile, offered me a glass of water and gave me my salary bill (no more salary slip). It contained details of charges for electricity consumed, toilet used, stationery, rent for table, chair, space, etc. He said this is what company had to spend on you, cozz we employed you. So net-to-net the debits were more than credits, so we had to deduct from your salary.

What will you call that, if your blog speaks about CTC. Is it CBE (cost b'coz of employee)

Everything is fair in love & MNC's. (war is a mild term, while MNC is a strong term)

Jaya Chitra said...

I agree. When the employer's contribution is shown as part of CTC and getting deducted twice from your salary (Employer's and employee's contribution) I feel a kind of dissatisfaction.