Performance Allowance or Bonus
Performance allowance or bonus, if part of CTC, is payable if one leaves the organization immediately upon completion of the financial year. This is because the performance bonus, as the name implies, is payable after the end of the financial year based on the individual's and company's performance as per the company's laid-down criteria and as a percentage of basic salary or a fixed lump sum as mentioned in the Yearly Performance Review Letter, Feedback/Increment letter, or Offer letter as the case may be. A point worthy of note here is that such performance bonuses vary with one's position or level in the organizational hierarchy.
Such performance bonuses are usually payable by the employer, subject to one remaining in the existing job and continuing to be an employee of the organization at a future date as per the letter of offer/PMS/Increment letter. In other cases, when one leaves the organization due to resignation, the performance bonus is payable following the employer's HR practices or policies as applicable on the given date. In all fairness, all ethical/professional organizations do pay performance bonuses subject to the fulfillment of laid-down criteria on a pro-rata basis to outgoing employees (based on the company's and individual's performance). This, in most cases, is payable at the end of the financial year.