Finance / Financial Planning

You need to start including this in your CTC!

. 5 min read . Written by Priyanka Sutaria
You need to start including this in your CTC!

Here is a list of everything you need to account for and include in your CTC when responding to a job offer.

There’s a lot we aren’t really taught about money. And it becomes even more obvious when we finally get the job we’ve been vying for, and they ask you what your CTC is.

The first time I was asked that, I had to Google it. (It means cost to company, that is your salary in hand plus tax and other allowances, in addition to the benefits you receive.) And yet, everytime I went for a job interview and was asked my expected CTC, I still got it wrong.

Not to mention the fact that nobody taught me what I need to consider when I am quoting a figure… Turns out, quoting a random figure is really detrimental to both your present and your future.

I do not wish the same mistakes for those of you who are starting out. So here is a list of things you should definitely account for and include in your CTC!

A Salary Is The Sum Of Your Labour

Your performance at an organisation is not just the final output of your labours. It is also all the hours of coordination and smaller tasks that go into it. It is all the expertise that you have built over the years that you now bring to the table. 

Just because the final product is one thing doesn’t mean it isn’t built on the foundation of a dozen small tasks and they all need to be accounted for — it in your schedule and your paycheck.

For example, you aren’t just writing an article. You are researching it, writing it, formatting it, optimising it, editing it, and uploading it. Every single step is a task, and you shouldn’t be reducing your task by calling it ‘just one article’.

A salary is paid in exchange for labour, and it is the sum, rather than the output of the labour you must charge for.

This is especially true for freelancers, or consultants who are charging on a project basis. When drafting a rate card, all of these building blocks in service of the final project must be accounted for.

Overtime Should Be Included In Your Salary

You are given a set number of working hours in your contract. But you are expected to be present above and beyond that, then you should be paid more.

If your contract expects you to be present Monday to Friday, but the company decided to start having Saturday events on a monthly basis, then you should be paid for those overtime hours!

Expecting you to stay late on occasion is completely different from expecting you to come in for more than the stipulated days in your contract on a regular basis.

The whole point of a salary is that it accounts for a regular basis, so if your company expects you to put in more labour and time, then they should be paying you for it.

Expenditure For Work Purposes Is The Company’s Responsibility

The definition of a workspace has changed over the last few years. And this definition has been further altered drastically in the last few months.

Make sure your CTC includes the costs of doing the job well. If your workspace is your laptop, or if the company you work with expects you to work constantly on your phone, then they have to cover those costs.

For example, you might be working in an industry where a laptop has to have certain specifications which makes them expensive, or you might have to be on call a lot. Then the company has to pay for the gadget in the former, and the phone bill in the latter.

This also includes the purchase of software which is necessary for work, as well as stationery if there is a lot of pen-and-paper work.

Other examples would be cameras and lighting equipment, safety gear, Wi-Fi, travel for work reasons, and so on. Medical risks are yet another thing to account for in your CTC.

In a welcome move, companies have now started reimbursing people for work-from-home costs too, so things are definitely looking up.

If Your Job Role Expands, So Should Your Cost To Company

You may have been given a distinct job description when you were joining a company, but if that role increases vastly in scope, then your salary should as well.

When you join a company, ensure that they include a clause stating that requirement in your contract. Not doing this is a rookie mistake I have made, and trust me, you don’t want to feel the stress about asking for a raise when the company expects more work but doesn’t offer to increase your pay up front.

As I have mentioned, a salary is the sum of your labours. More labour should equal more income.

Currently, we are in a period of financial stress, which means increased salaries are unlikely. In fact, reduced income is more on par for the course. 

So if you are joining a workplace now, and they seem to want to settle on a lower figure using the excuse of the economy, make sure that they include a clause which ensures a salary hike when the situation improves.

Always remember: a company is likely to negotiate from the bottom up. It’s a cost-saving tactic, and a dirty one at that. You should be prepared to negotiate top-down, and not to settle at a figure they deem acceptable.

Is there something you’ve had to account for and include in your CTC that we’ve missed out on? Let us know in the comments below!

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