Total Cost of Employment Concept In HR By Segun Akiode, Strategic HR Professional

Total Cost of Employment Concept In HR By Segun Akiode, Strategic HR Professional. Total Cost of Employment (TCE) or Cost To Company (CTC) is the actual amount paid by the organisation/company for all employee salaries and benefits.
This can be broken down into the following:
1. Fixed Pay
2. Variable Pay (STI & LTI)
3. Benefits-in-Kind (BIK)
4. Retirement Benefits
Fixed Pay - employee guaranteed compensation. e.g. Basic salary & cash allowances.
Variable Pay (STI & LTI) - Pay-at-risk, it changes directly with the level of job grade & job performance/results achieved e.g. Profit Sharing, Bonuses & Equity Based Schemes.
BIK - these are non-monetary programs that are used to supplement cash compensation e.g. Status Car, Medicals, Lunch, Staff Bus etc.
Retirement Benefits - these are employees post-employment benefits e.g. Statutory Pension Contribution and Gratuity Benefits.

[@AskREO.]

Very useful

[@segunakiode]

Thanks a lot.

[@justiceopokuagyemangboadu3656]

Please so in a Job offer if an amount is stated as the total cost of employment does that means that's the take home salary??

[@segunakiode]

The take home salary (net pay) is different from the total cost of employment. You can watch the following videos for more clarity - kzbin.info/www/bejne/lYbIoYmfaseZnq8