“This is not what I was promised”. These are the word that I often hear from candidates who are actively looking to leave their current company. After breaking down the cause of the unhappiness it is found that the initial salary offer was not understood or clarified and so the candidate feels like they have been cheated which leaves a bitter taste of resentment. Understanding your Payslip or salary is crucial when looking for job opportunities.
Let’s start off with understanding CTC (cost to company). This is a term that you will often see on job offers and what most don’t realise is that cost to the company includes every cent the company spends on you. This includes all the benefits that you may or may not make use of. For example, some companies offer a canteen lunch allowance of R1000 a month but because of your dietary requirements, you may decide not to use this benefit. This makes CTC deceiving as this is not a true reflection of your salary, it only shows the company’s total spend on you.
A basic salary is a term that is often used in conjunction with a commission for sales jobs. Your basic salary may exclude some benefits (e.g., car/cell allowance) but remember that your PAYE and UIF still need to come off that basic salary but a basic salary a bit more accurate as to what you will come out with.
Nett salary is what you will take home at the end of the month, this is the amount that will reflect in your bank account. If you are ever unsure about a job offer always ask for the nett salary. Keep in mind that your nett salary will not reflect benefits which are useful to you such as medical aid and provident or pension fund.
If you are ever unsure of a job offer or your own salary please speak to HR in your company and they will be able to further explain.