Resigned and in Notice Period: Can I Still Get My Variable Pay Bonus?

Hi, this is going to happen for me in Chennai. My variable pay is part of my CTC. My employer considers January to December as a fiscal year. I resigned in the second week of January. My employer usually pays variable pay during the month of February. Now, I have received a message from HR stating that I am not eligible for the bonus and I need to serve the notice period until March.

Can't I do anything now? Do I need to forget about that amount?

Dear Vijay,

Please refer to the points below:

1. **Variable Payment:** If it is during your employment, then it is your right to receive it, especially when it is part of your CTC.

2. **Notice Period:** First, check the Terms & Conditions of your appointment letter to determine the notice period and whether you have served it accordingly. If you have, then no one can ask you to wait.

3. **Bonus:** As per the Bonus Act, if your gross salary is more than ₹10,000 per month, then you are not eligible for a bonus. Therefore, it is the company's policy whether they still want to pay it or not.

I hope the above points clarify your concerns.

Regards,
Tushar Swar

I agree with the answer. But what about an incentive that an employee earned through their hard work during one financial year and then resigned from the service? Kindly suggest.

Variable Pay and Notice Period Considerations

Unless otherwise specified that a departed employee would not receive the benefit of variable pay, this component of pay should be disbursed during the notice period as well. This is because variable pay is something the employee has earned by working or putting in extra effort, and the amount earned will not vanish from the records simply because the employee has left, especially when the amount is detailed as part of the remuneration in the CTC statement provided by the company.

Simultaneously, group incentives, typically given to incentivize employees to remain with the organization, will be a sum divided among the members of the group. When dividing among the group, the departed employee will not receive a share, but the others will receive an increased share. The rationale here is that an individual who has chosen to leave may not be contributing the same level of effort as others, and therefore, will not be eligible for any group incentives. However, variable pay is determined by an individual's quantified and tangible results, and it is unfair to withhold it and divert it to the company's profit.

Regards,
Madhu.T.K

As you have mentioned, "if your gross salary is more than 10k per month, then you are not eligible for a bonus." I just want to know if it is applicable to the gross or the basic salary. As far as I know, a bonus is not applicable if your basic salary is more than 10k. However, you have mentioned gross salary. Would you please clarify?

Regards,
Dinesh Kumar