Time to get rid of CTC figures in Indian IT

In a very strong move against companies misleading  candidates with false CTC figures, IIM’s have instructed companies to  give  a more accurate information on Salary. They have advised companies to shoe exact minimum cash component a candidate will receive  excluding Bonus and performance pays. And companies can specify another component MEP, ie maximum earning potential which can include bonuses, and other variable components.

In Indian IT industry the CTC is another way of companies inflating salary to lure employees. CTC – Cost To Company, in many cases is irrelevant to employees.  By showing a bloated figure including maximum variables and other  non cash contributions companies often cheat potential candidates. It is a sad fact that this is how many of our leading companies like TATA Consultancy Services (TCS) , Infosys et al make offers.

With the move from IIM’s this should also be enforced in all colleges and universities to protect students and providing more easy way of understanding their future salaries.