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

rajeev.jha620
Please help me Understand:

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

If this is the case, such deduction should be shown in salary slip as what?
vmlakshminarayanan
Hi,

Holding 30% of salary , even if it is for non achievement of target is not right.

Apart from salary what ever performance incentive payable can be holed for not achieving the target. But holding part of fixed salary is not right.
smdharanimano
Dear Mr.Rajeev,

Payment related to Target achievement called "Performance incentive",

"Performance incentive" is on & above the Gross salary.

the percentage also vary department wise based on their Business targets.

deducting such huge amount on net pay will not help you to achieve the targets.

best regards
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