Understanding your salary can sometimes feel like deciphering a secret code. All the different terms can leave your head spinning. But fear not, we’re here to demystify the jargon and make it super simple for you to understand.
Let’s start with the basics:
Cost to Company (CTC): Your True Value Package
Your CTC is the total cost the company pays to EMPLOY you. This is the figure that companies negotiate salaries on, so it’s important you understand Cost to Company. It includes not just your basic/gross salary, but also the company’s contributions to your medical aid, retirement contributions, and other sweet perks and allowances to make you feel valued!
Basic or Gross Salary: The Basic Bucks
Think of your basic salary as the foundation of your pay pyramid. It’s essentially the fixed amount of money you earn before any of the other benefits such as medical aid, provident, funeral plans, etc. are added on, and before any deductions like taxes, UIF, your contributions to medical aid, retirement etc, take a bite. This is the number that makes your eyes light up!
Nett Salary: Your Pocket Power
Nett Salary, or Take-Home Pay, is the number you’ll see in your bank account. It’s what you get to play with after taxes and other deductions have taken their share.
So, next time you’re faced with a salary discussion, you’ll be armed with the knowledge to decode the lingo and negotiate like a pro! Remember, your salary isn’t just about the numbers on your payslip; it’s about understanding the full package and ensuring it aligns with your financial goals.
Stay savvy, stay informed, and watch your nett worth grow!