24th September 2016 From India, Salem
Further to what Umakanthan mentioned, pl note that many Companies have this practice of splitting the CTC into Fixed & Variable components.
While there's nothing really wrong to adopt this model in these days of cut-throat competition, NOT many companies have the Policy/Rules clearly laid-out on what CONSTITUTES the Variable & what FACTORS effect the Payout [many IT Companies.....including top-notch ones....never pay the FULL variable component @ the end of the year, but can justify such lower payouts as they have clear norms spelt-out & employees too don't, usually, crib as they are aware of the guidelines].
In your case, looks like your Company doesn't have such a practice & hence this manager is able to take advantage of the loop-hole.
Better talk to him arrive @ a via-media solution. That would be better than allowing the issue to drag-on.
And also frame the broad guidelines about the Variable Salary Policy--so that you preempt a repeat of such situations.
All the Best.
28th September 2016 From India, Hyderabad