Deduction from Net Pay to be shown in salary slip as what?

Please help me understand:

Policy on Conditional Pay

The company wants to introduce a policy where they will pay 30% of the net pay per month only upon the achievement of certain criteria. If the target is not achieved, they do not want to pay anything from that 30%. Can the company do so?

Salary Slip Deductions

If this is the case, should such deductions be shown on the salary slip?

Hi, Holding 30% of salary, even if it is for non-achievement of targets, is not right. Apart from the salary, whatever performance incentive is payable can be held for not achieving the target. But holding a part of the fixed salary is not right.

Dear Mr. Rajeev,

Performance Incentive

Payment related to target achievement is called "Performance Incentive." The "Performance Incentive" is calculated on and above the gross salary. The percentage also varies department-wise based on their business targets.

Deducting such a substantial amount from the net pay will not help you achieve the targets.

Best regards