Dear Sir,
I have a query on salary compensation being paid by the organization. These days companies are bifurcating the salaries into Fixed & Variable parts.
Fixed part is being paid on Monthly basis while variable part is to be paid at the end of year based on Company's performance & Individual performance. Normally the variable part of the salary is kept at 10-15% of the total package.
If any body leaves the organizaion before Financial year closing then the companies are not paying the Variable part of the salary. I wish to seek your help in this regard that since variable pay is part of individuals salary, Can company deny to pay it to the person to pay for the period person has served the organization.
Thanks & Regards,
Sanjay BAnsal
From India
Dear Vivek
I think the question was only about variable component and not about flexi.
Variable is not paid if the employee is not in the rolls as onthe date of disbursement
It is a right methodology and i dod not see anything wrong in this system
Siva
From India, Chennai
366I think the question was only about variable component and not about flexi.
Variable is not paid if the employee is not in the rolls as onthe date of disbursement
It is a right methodology and i dod not see anything wrong in this system
Siva
From India, Chennai
Hi,
The variable pay should be paid if the employee is on roles at the time of disbursement of the VP. If he is not on roles the same will not be paid out.
Your question is a mixture of 2 questions.. wherein i was confused!!
There are fixed compensation plan and flexible compensation plan, the fixed compensation plan is fixed for the whole year, where in if the employee is under flexible compensation plan he can allocate his CTC under whatever heads he would like to. If the employee of flexible complan has resigned it is computed on the basis of heads he has allocated. This has nothing to do the Variable pay.
You can take my answer whichever is applicable to you.
Regards,
Vivek
From India, Bangalore
The variable pay should be paid if the employee is on roles at the time of disbursement of the VP. If he is not on roles the same will not be paid out.
Your question is a mixture of 2 questions.. wherein i was confused!!
There are fixed compensation plan and flexible compensation plan, the fixed compensation plan is fixed for the whole year, where in if the employee is under flexible compensation plan he can allocate his CTC under whatever heads he would like to. If the employee of flexible complan has resigned it is computed on the basis of heads he has allocated. This has nothing to do the Variable pay.
You can take my answer whichever is applicable to you.
Regards,
Vivek
From India, Bangalore
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Salary & Compensation Guidelines.zip