Understanding Variable Pay in India: What Should Be Included and How to Calculate It?

Hi Everyone,

I came to know from my MD that there is a significant discussion going on regarding the basis of variable pay in the Indian market (as my company is US-based). I need your help in obtaining information that clearly states what should be included in the variable pay and how it should be calculated (criteria for calculation). Please, can any of you help me out, as I have to submit this report by Friday? (I tried to search the document from citehr but couldn't succeed).

Cheers,
Kevina

Variable Pay:

1. This component is paid along with the CTC and is also not part of CTC.
2. It varies at each level with different parameters.
3. If you have a fixed VP in the offer letter, then this can be paid after the appraisal based on the ratings.
4. This can be paid after the employee completes a certain period in the company.

Trust this will help give you an idea to move forward. Please revert for further details.

Regards,
Dasa

Hi,

Please find the attached article on Variable Pay. I hope it will help you understand Variable Pay to a certain extent.

Shree

Hi Everyone,

Thank you for your quick help. It's really worth reading. I came to know the basic fundamentals of variable pay, i.e., ratios, factors/criteria to be considered for Variable Pay. I need a variable pay document as an example (of an IT company) so that I can give it to my boss, as my boss is insisting. I know it's a confidential document, but is anyone able to help me with this? Please help me out.

Cheers,
Kevina

Dear Kevina,

I am trying to get the VP document for IT. Please provide your personal email ID so that I can send it to you upon receipt.

Regards,
Dasa