Madhu.T.K
Industrial Relations And Labour Laws
Saswatabanerjee
Partner - Risk Management
Keerthykk
Manager
Pon1965
Construction
B K BHATIA
Director Of Company
+3 Others

Hello Every one,
Pls help me with this question.
Performance Linked Incentive (PLI) is part of my CTC, which is a fixed component.
Can i company deny paying PLI which is fixed part of my CTC.
If yes, on what grounds?
Any case precedence has happened can be quoted.
Thank in advance.

From India, Chennai
Performance Linked Incentive being a fixed component of CTC and the CTC being the amount on which you have agreed to work with the company, the PLI cannot be denied to you. Your demand should be like this; that the sum of Rs .....(CTC) was the amount on which I have agreed to work with the company and its bifurcation into small elements has been done for the convenience of the company and I am even okay with a consolidated amount equal to the gross salary and therefore, I shall be paid the gross salary without deducting PLI which is not even a variable pay.
Regards,
Madhu.T.K

From India, Kannur
How can performance linked incentive be a fixed component
The amount of performance bonus is fixed, I can accept that, but whether you will get it or not will depend on how you have performed .....
The question is more linked to,what was discussed in your interaction with hr when u joined. Was this promised to you as compulsorily payable (like statutory bonus) ?

From India, Mumbai
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Dear Keerthykk
PLI is directly concerned with the Performance of both an employee & employer.
This also is termed as Variable pay in few companies.
As such the possibility of its payment or refusal both may exist depending on the performance measures of an employee & employer.
Chandrakant

From India, Mumbai
Performance linked bonus , in my view is admissible on certain terms and conditions linked to your performance. Your claim to it is tenable provided you fulfilled those conditions. If you have not fulfilled those conditions, the company can deny it. Therefore, be sure about it first.
B.Saikumar
Mumbai

From India, Mumbai
The performance linked variable component of the salary is always based on the terms & conditions of its payment which an employee signs for at the time of recruitment. Normally, it is linked with the performance of the company, of the team/ department & of each individual employee. It is worked out on the basis of algorithms designed to implement the company policy.
You may, therefore, like to read your company's policy & process connected with the payment of performance linked variable component of your CTC.

From India, Delhi
When Keerthy himself/ herself has said that the PLI is a fixed component of his/ her CTC, why should there be a debate on it? I know that by definition it is a variable component and is payable based on performance only, but in the present case it is a fixed component of gross salary and that is why I said it should be paid irrespective of performance. A component of salary should not be just to show high salary so that a candidate can accept the offer. Many companies do include it as a component of salary and face the consequences. The case here also is not different.
Madhu.T.K

From India, Kannur
Hi Keerthy, You had mentioned that the PLI is fixed, but there may be some conditions for the same. in our company also we pay bonus as yearly component, but the performance has to be satisfactory at least. if its below average or poor than its companies discretion to wehther pay it or not. Please read carefully the terms and conditions for PLI in your appointment letter or companies handbook. it should be mentioned there. if there is nothing mentioned than company has to pay you the PLI.
From India, Mumbai
Kindly provide salary break up of Rs 5 lacs with variable pay of 10% extra and what would be CTC for that considering Bonus as 8000/- and LTC as 12,000/- , Looking for an early response with much anticipation , Please attach the same on excel sheet with Salary Slip specimen
From India, Kolkata
Here in given case PLI though shown as fixed while negotiating / fixing the terms of employement, which may be hidden or in Policy/Rules of the organisation, due to which it seems to be denied. Hence in absence of clear information on ths ame, it is very difficult to provide any view.
However, kreethykk please study the policies and its applications carefully before arriving on any conclusion.
In general acceptable term PLI means linked with the performance which may or may not be fixed to certain extent.

From United States, Palo Alto

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