Can variable pay be a part of the CTC of an employee? As far as I think, variable pay is based on the employee's performance throughout the year, so how can that be decided in advance? Is it correct to include it in the Annual CTC of an employee?
Please share your views.
Regards,
Kamini
From India
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Please share your views.
Regards,
Kamini
From India
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Hey Kamini,
Actually, if you want to motivate your employees, you can inform them in advance that they are entitled to variable pay and specify the amount, but this will be based on their performance.
For example:
CTC: 10000
Fixed pay: 7000
Variable pay: 3000
You can explain that their 3000 variable pay will be based on their performance; otherwise, they might receive less. Therefore, you can structure it accordingly for your organization.
From India, Bangalore
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2Actually, if you want to motivate your employees, you can inform them in advance that they are entitled to variable pay and specify the amount, but this will be based on their performance.
For example:
CTC: 10000
Fixed pay: 7000
Variable pay: 3000
You can explain that their 3000 variable pay will be based on their performance; otherwise, they might receive less. Therefore, you can structure it accordingly for your organization.
From India, Bangalore
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Hi Sowmya, In your reply it is very clear that variable pay is inculded in the CTC. Correct me if i am wrong. Regards Amith R.
From India, Bangalore
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From India, Bangalore
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Dear Friend,
Kindly click on the following link, it will give you some required information,
https://www.citehr.com/search_new.ph...+Pay&submit=Go
Pls let me know was this information useful,,
If not let me try out more & give information,,,,
In CiteHR you will get A to Z information on HR…..
Regards
M. Peer Mohamed Sardhar
093831 93832
From India, Coimbatore
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Kindly click on the following link, it will give you some required information,
https://www.citehr.com/search_new.ph...+Pay&submit=Go
Pls let me know was this information useful,,
If not let me try out more & give information,,,,
In CiteHR you will get A to Z information on HR…..
Regards
M. Peer Mohamed Sardhar
093831 93832
From India, Coimbatore
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Yes it is included but its always depends on the company policies. If they are willing they can have at the begininig else at the end
From India, Bangalore
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From India, Bangalore
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Kamini: It varies from companies 2 companies, you can add it and clearly mention about it or pay them seperate as a bonus component on their KRA’s achieved Thanks - Mirza Hyderabad
From Saudi Arabia, Jiddah
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From Saudi Arabia, Jiddah
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Hi Kamini,
Yes, variable pay can be a part of CTC. In our company, we have a salary structure wherein we refer to it as special pay. Variable pay is contingent on the performance of an employee and may fluctuate accordingly. Therefore, both types of pay can be included in the CTC.
Thank you.
From India, Bangalore
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Yes, variable pay can be a part of CTC. In our company, we have a salary structure wherein we refer to it as special pay. Variable pay is contingent on the performance of an employee and may fluctuate accordingly. Therefore, both types of pay can be included in the CTC.
Thank you.
From India, Bangalore
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Dear Kamini,
In this current scenario, we are not getting the proper manpower with the required skills. The market is open now, and the employee turnover is also high. For the sake of retaining skilled and competent manpower, we are trying to keep the existing manpower for a longer time.
In connection with the above, many new HR techniques and policies are there, and this is one of the HR policies for retention. The same is communicated during interviews.
From India
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In this current scenario, we are not getting the proper manpower with the required skills. The market is open now, and the employee turnover is also high. For the sake of retaining skilled and competent manpower, we are trying to keep the existing manpower for a longer time.
In connection with the above, many new HR techniques and policies are there, and this is one of the HR policies for retention. The same is communicated during interviews.
From India
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Employee Performance.pdf
VARIABLE PAY.doc