Productivity Incentive Is A Part Of Gross Wage In Wage Agreement - CiteHR
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Pl. let me know that while entering a wage agreement is productivity linked incentive to be considered as part gross amount ?
Many practices are followed.
1. Some talk about only the Basic plus allowances increase
2. Some talk about Gross which includes Basic plus DA plus allowances and do not consider incentive at all
3. Some talk about Basic plus allowances plus statutory plus Incentive
At the end of wage agreement, one need to have resolved all issues including productivity and incentives.
Some organisations have moved away from productivity linked settlements now as mostly productivity depends on Technology today. It is sifferent subject and I will be deviating from your main question.
I suggest, if you are settling issues including productivity and incentive, include as part of the negotiation. Closer to 5% to 10% could be be earmarked for Incentive on total.
T Sivasankaranincentive

Mr.Sunil kumar
If the wage agrreement contains a clause that it should be treated as part of gross wages, then it shall be treated as part of it. In the absence of it, look for the intention of the parties reflected in the langauge of the terms of agreement such as whether there is calrificatory clauses like it shall be treated as bonus for achieving production targets etc..In the absence of these clues, productivity linked incentive in my view, shall not be part of wages since it is in the nature of bonus.
B.Saikumar
HR & Labour Law advisor
Mumbai

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