Hi All, I am working with a Public Ltd (Automobiles) Company. (The company has made good profits in FY 13-14).
In FY 2013-14, I've been rated during my appraisal as Praise Worthy (Very Good), and the Performance Pay awarded is 125% of Variable Pay. When it comes to CTC Revision, I've had a reduction in my CTC (Fixed Pay i.e., Basic Salary) by 4%.
I would like to know, if a person is one of the best performers (awarded two times in the last financial year), then how can the company reduce the Basic Salary (overall package reduction by 4.2%)?
Please guide.
Regards, Sunil
From India, Mumbai
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In FY 2013-14, I've been rated during my appraisal as Praise Worthy (Very Good), and the Performance Pay awarded is 125% of Variable Pay. When it comes to CTC Revision, I've had a reduction in my CTC (Fixed Pay i.e., Basic Salary) by 4%.
I would like to know, if a person is one of the best performers (awarded two times in the last financial year), then how can the company reduce the Basic Salary (overall package reduction by 4.2%)?
Please guide.
Regards, Sunil
From India, Mumbai
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Possibilities for Basic Pay Reduction
Two possibilities for a basic pay reduction are:
• Change in job scope - specifically a reduction in scope.
• Change in the company's reward strategy - a curb on basic pay (which is a fixed cost for the company) but compensated by a performance-based variable plan (which is tied to the company's bottom line).
It would be beneficial to have a chat with your HR or bosses to clarify your concerns.
Regards,
Autumn Jane
From Singapore, Singapore
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140Two possibilities for a basic pay reduction are:
• Change in job scope - specifically a reduction in scope.
• Change in the company's reward strategy - a curb on basic pay (which is a fixed cost for the company) but compensated by a performance-based variable plan (which is tied to the company's bottom line).
It would be beneficial to have a chat with your HR or bosses to clarify your concerns.
Regards,
Autumn Jane
From Singapore, Singapore
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