Even though the concept of incentive is not there in appointment letter, yet conditions of service may be altered later on. Madras HC has held in 2014 that incentive is not a right. But incentive like production incentive are held in certain circumstances to be part of emoluments by Apex Court in Tuticorn case. Everything depends upon facts of case in this regard. Generally, definition of wages under Payment of wages Act has to be referred to for determination of incentive as wages.
Sushil 14th May 2015 From India, New Delhi