Is My Variable Pay Linked to the Statutory Bonus? Seeking Clarity on Salary Components

Hi,

Is the variable component in the CTC related to the Statutory bonus? My variable pay is 15k, but I didn't receive it as I was informed that you have been paid the Statutory bonus.

Dear Friend,

In general, variable pay is entirely different from the bonus to be paid under statutory norms. Statutory bonus is mandatory.

As far as variable pay is concerned, part of your goals/KRAs/KPIs, the organization will pay variable pay (i.e., other than your fixed pay) on achieving the set targets. This variable pay will be paid on a monthly/quarterly/half-yearly and annually basis upon achieving the set targets agreed upon between the employee and the management.

In general, there will be a mutually agreed document on variable pay, and both statutory bonus and variable pay are different. The management cannot avoid it once it is agreed upon and documented.

Thanks and regards,
Kameswarao

Dear,

I am unable to understand your message clearly. If someone's basic salary + Dearness Allowance (DA) is less than 10k per month, are they entitled to a bonus?

In my current Cost to Company (CTC), the variable component is 15k. I am eligible for 8k, but as my basic salary is less than 10k, I am receiving 700 Rs per month as statutory bonus. However, in the bonus letter I received today, the company stated that they paid me 8.4k as statutory bonus. They deducted that amount from my Variable Component (VC), resulting in a total bonus received of 0 Rs.

Is this correct? Is the statutory bonus related to the Variable Component?

Thank you.

J. S. Malik