Hi, can anybody please tell me if a monthly incentive is added to the fixed salary in the appointment letter, does the company have to pay the monthly incentive in full every month, or can they deduct this by stating it is a variable component.
Regards,
Chandrasekar
From India, Chennai
Acknowledge(0)
Amend(0)
1Regards,
Chandrasekar
From India, Chennai
Acknowledge(0)Amend(0)
As a concept, 'Incentive Amount' is variable, and the payment depends on the real performance against set factors. For example, for production of more than 100% target could fetch X amount, and a lesser performance could result in X-. If the incentive is a fixed amount, then it becomes a constant, predictive factor and would soon lose its appeal as an incentive for improving performance. Employees might start taking it for granted.
From India, Mumbai
Acknowledge(1)Amend(0)
From India, Mumbai
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Appointment Letter to an Employee for fixed period.doc