Fixed Pay And Variable Pay - Dearness Allowance
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Fixed Pay And Variable Pay - Dearness Allowance

Kirangattineni Started The Discussion:

Can somebody please explain what fixed pay and variable pay is. It would be great if examples are provided Thanks, Kiran

ashoka187 - Member Since: Jan 2007
Hi Kiran,

Fixed pay is the salary that you get on monthly basis whereas variable is like incentives (fixed) which will be paid to you depending upon your performance or any other criteria which you get half yearly or yearly.

abbasiti - Member Since: May 2010
Dear Kiran, Industrial DA (which is also called variable DA) is also variable in accordance with the consumer price index / inflation. Abbas.P.S

ramachandrak62 - Member Since: Apr 2010
Hi Kiran
Fixed pays are
Basic, DA, HRA, Conveyance allowance, special allowance, adhoc allowance, medical reimbursement, LTA, etc. (some of these can be annual payments also)

Variables pays are
DA (if linked to CPI points), incentives, OT, shift allowances, travel allowances, etc.

There is no fixed rule that a particular component is a fixed pay. Generally Basic & DA are the fixed components and depending on company's policy, other components get added as fixed pays.

Trust this clarifies the matter.

K.Ramachandra
Bangalore

rameshreddymalla16 - Member Since: Jul 2010
Quote:
Originally Posted by Kirangattineni View Post
Can somebody please explain what fixed pay and variable pay is. It would be great if examples are provided

Thanks,
Kiran
Hai Kiran,
I am Ramesh according to my knowledge about Fixed Salary once it fixed from employers some amount like 10,000 Rs/- you will get only that amount.

Comming to Variable salary there is no limit for your salary that is only depending on your performance means. you did better performance in your field you will get Incentives and commissions like that.

Example:

Your Salary 10,000
Incentives: 5000
Commision: 1000
Total : 16,000

Kirangattineni - Member Since: Jul 2010
Hi, Good Morning ! With your explanation and examples, I understood what fixed pay and variable pay is all about. Thank You all for the responses. Regards, kiran

sudheer.kvvsn - Member Since: Oct 2009
hai dear mine is one doubt are bonus, increment(yearly) come under fixed pay or variable pay

ijravis - Member Since: Jul 2010
Fixed Pay is the pay you get as Salary. this consists of Basic Pay, HRA, CCA DA etc., The variable pay is the amount given on your performances. The Performance Incentives may be based on KRA/KPI and will be on Monthly or Quarterly Basis.

ramachandrak62 - Member Since: Apr 2010
Hi mr Sudheer
Bonus and increments are neither fixed pays nor variable pays
As Bonus is statutory and is payable only if your basic fall within Rs.10,000
Increments does not come either in fixed or variable pay as it is not paid and is subject to assessment. It gets distributed to basic and other components after it is paid. The question is it becomes variable or fixed pay only after it is paid and not before that.

Regards
K.Ramachandra
bangalore

nabolbona - Member Since: Mar 2010
Hi all

The question is which is fixed salary

It is the Basic Salary which is fixed for a certain period of time may be for 3 years 5 years as per the company's status
basic salary is increased when the increament comes. but that is also for a span of time.increment will come once in a year or two dependinbg on the company's pay structure.
House Rent Allowance(HRA) is a part of Fixed salary

Now Variable Salary is Dearness Allowance(VDA) as per Consumer price index(CPI) published by the Govt authority in every month.

Allowances will not be considered in any part of fixed or varible pay. becz they will not take part in your PF/gratuity calculation
.


Thank u all

nabolbona



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