Are employers right in using CTC as a measure of employee cost?

CTC IS TO SAVE TAX FROM EMPLOYERS POCKET AND DEDUCT IT FROM EMPLOYERS POCKET.HENCE IT A SORT INDIRECT BURDEN TRANSFERRED FROM EMPLOYER TO EMPLOYEE.

Heavy tax implications do not allow people to survive.

few people are taking very good package, but they don't know the basics......

The cost of an employee need to be measured in relation to the contribution of an employee. In fact both employer and employee are contributing for growth and profitability of the company. Hence contributions of both made in any forms need to be considered to arrive at any decision with regard to over or under payment.

All costs should not be associated to Employee as if there is not other costs, what you paying to Employee should be like benchmark and it should be Employee's earnings.

and ctc or compensation should be going to Employee and clearly describe what is the take home money.

it is something  like seeing a object from different views , if you look for employers point of view it may be one tool they use , but if you look it from employee point of view it is not. i think it is not the right way , every individual is different sometime you have to ignore the tools it all depends the need of the hour.if the business requirement is like then they adjust and in other time when there is no urgency then they use this kind of tools . in my view they should always look for new things / tools to attract.why i am saying so .......i have experience of both , i started my career in 1983 and up to march 2002 i was in job , after that i am in business.

I would say that the various taxes paid by the employees to the Govt. is actually a cost incurred by the company and is paid to the exchequer.  It cannot be classified as a CTC on behalf of the employee. Instead the companies should take the actual payments made to the employees only as CTC (direct cost)

What is important is the take home salary as a percentage of CTC. The employers have to offer  tax-efficient options as a part of the company’s salary structure, to maximise the cash in hand. Every company will have its own range of options that they can offer, depending upon its internal accounting policies and interpretations of the tax code. The closer the take home to the CTC, the better the CTC parameter for measuring cost.

THE TAKE HOME PAY COMPONENT SHD BE CLEARLY STATED ALONG WIHT OTHER COSTS INCLUDED BY THE EMPLOYER.

The package should be given very clearly with lot of transperency...In ctc..no body can understand what is what..most the time,the employer using this as a chance to catch hold some thing after the employee accepts the offer.

As u said,the salary package, should be very clear and transperent..