Is It Fair to Deduct 20% of My Salary Without Notice? Seeking Advice on Next Steps

Hi all, I have been associated with a company for the past 6 months. A 20% performance variable was deducted from my salary for the last 2 months without notifying me. I checked my offer letter, but there is no mention of variable pay or anything about performance pay; there is only a fixed salary structure. I discussed it with HR the first month, and HR told me that I would get that variable after discussing it with the reporting manager. However, it was deducted again in the last month, similar to other deductions in the salary slip. I discussed this again with HR, and they informed me that I would not receive the variable and suggested searching for a new job.

What should I do, and how can I retrieve this deducted variable?

Regards, Nishikant

Variable pay is a component of salary that is paid over and above the fixed part of the salary. It is not a deduction from the salary. Illegal Deduction of Variable Pay The practice of the company deducting 'variable pay' is just illegal. You can either leave the company or fight for your right by complaining to the labor authorities. If you proceed legally, the company will not spare you, but they will terminate you. Then you have to take up two issues: wrongful deduction and termination without valid reasons. All these will take your time and energy. Therefore, try to find a better job and leave this company at the earliest.

Thank you, sir. Yes, sir, after I get a new job, I will discuss this once with the director. If they do not agree to pay my deducted amount, I will take legal action against the company.