Hello, everyone. Can anyone please enlighten me on how the hike works?

Is percentage we get calculated on the total CTC (fixed + variable),

or only on the fixed component,

or on the base salary (excluding HRA and other allowances)?

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This is how it works at Ford:

CTC = Fixed (Base + PF) + Variable...
Eg: CTC of 25 lpa= 22 (20 +2) + 3

Hike happens not even on the entire fixed component.. It happens only on the 20L in the above example..

Assume 10% hike, so, 20L + 10% hike = 22L

New TCTC will be = 24.2 (22 + 2.2) + 3.3 = 27.5 .. Why 3.3? . In your offer letter, you would ve seen that the Annual Perf-based Variable Pay is straight 15%.. So, 15% of 22 = 3.3L

Assume 10% hike runs on overall CTC rather, then 25L + 10% = 27.5 approx.

So, whether hike runs either way, overall CTC would still be slightly same..

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When the base salary in the fixed compensation is increased, the retiral benefits will be increased automatically.
Why because, retiral benefits are not a fixed amount it is based on the basic salary.
PF : 12 percent of basic salary
Gratuity: about 4.8 percent of basic salary

So, as the base salary increases it automatically increases the basic salary which in turn increases the retiral benefits

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