Is It Right to Include Performance Linked Incentive in CTC Without Clear KRAs?

Performance Linked Incentive in CTC Components

I have recently joined a new organization. Previously, HR issued an Offer Letter and Appointment Letter which included the Performance Linked Incentive (PLI) in the CTC components. As per my understanding, PLI is a variable component and should not be part of the CTC.

In practice, we are supposed to release the PLI amount biannually. Upon checking, I discovered that it has not been paid for the last one and a half years. Additionally, we have not established any Key Result Areas (KRAs) to measure performance.

Could you kindly suggest the correct way to include PLI in the CTC sheet?

Regards,
Devang Pandya

As per the norms of CTC, PLI is also covered under CTC. The PLI has not been paid for the last one year and a half, and the fact that the KRA/norms for qualifying and levels of PLI to be released to employees have not been worked out shows the callousness of the HR department concerned. Either the department lacks knowledge and efficiency, or it is in league with the employer and is exploiting employees through unfair labor practices.

Hence, please accomplish what has not been done instead of raising such issues in question.

Regards,
S.K. Johri