Why Variable Pay in CTC is Fraud

An employee joined a company with a CTC of INR 12 Lakhs. The salary break up says 9 lakhs fixed in various breakups and 3 lakhs variable pay based on performance.

Now the conditions read below:

• This variable is approximately 25% of CTC. The actual amount will vary between 15% to 30% based on performance

• This variable pay will be paid after 6months of completion of financial year

• On the day of payment, you should be employee of the company and you should not be on notice period

• Variable pay is a discretionary payment, management has all rights to cancel the payment if the financials of the company does not permit on the day of payment

Now an employee receives an email that management has decided to forfeit the variable pay as the company's financial situation does not permit due to COVID-19 pandemic

Always try to negotiate and convert your variable pay into fixed pay.

Awareness is our duty and right.

(Based on True Story)

... Krish Charie 🖋