Dear Team,
I hope most of you are aware of the revision of the salary structure in some of the IT companies from 90:10 to 70:30 (fixed:variable). My company is also planning to follow the same. As per my knowledge, we can't reduce the fixed salary to increase the variable component as it's against the law. But I am not sure how other companies are doing it. Can anyone please advise me on this? Is it allowed to reduce the fixed component to increase the variable?
From India, Bengaluru
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I hope most of you are aware of the revision of the salary structure in some of the IT companies from 90:10 to 70:30 (fixed:variable). My company is also planning to follow the same. As per my knowledge, we can't reduce the fixed salary to increase the variable component as it's against the law. But I am not sure how other companies are doing it. Can anyone please advise me on this? Is it allowed to reduce the fixed component to increase the variable?
From India, Bengaluru
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Commonly followed precedence is to implement any change with prospective effect, not retrospective effect, for the terms and conditions of employment being in the nature of a contract executed between the signatories need to be honored. Trust deficit is bound to tarnish trustworthiness.
These are my standpoints I espoused wherever I aided and advised the employer/management.
Harsh K. Sharan Kritarth Team, 1 Dec 2019
From India, Delhi
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206These are my standpoints I espoused wherever I aided and advised the employer/management.
Harsh K. Sharan Kritarth Team, 1 Dec 2019
From India, Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Creating a Competitive Salary Structure.doc
Salary Structure.zip