HI, Is Variable component in the ctc is related to the Statutory bonus? as my variable pay 15k but i didn’t get it as i told tht u have been paid Statutory bonus.
From India
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From India
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Dear Friend,
In general, variable pay is entirely different from the bonus to be paid under statutory norms. Statutory bonus is mandatory.
As far as variable pay is concerned, part of your goals/KRAs/KPIs, the organization will pay variable pay (i.e., other than your fixed pay) on achieving the set targets. This variable pay will be paid on a monthly/quarterly/half-yearly and annually basis upon achieving the set targets agreed upon between the employee and the management.
In general, there will be a mutually agreed document on variable pay, and both statutory bonus and variable pay are different. The management cannot avoid it once it is agreed upon and documented.
Thanks and regards,
Kameswarao
From India, Hyderabad
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32In general, variable pay is entirely different from the bonus to be paid under statutory norms. Statutory bonus is mandatory.
As far as variable pay is concerned, part of your goals/KRAs/KPIs, the organization will pay variable pay (i.e., other than your fixed pay) on achieving the set targets. This variable pay will be paid on a monthly/quarterly/half-yearly and annually basis upon achieving the set targets agreed upon between the employee and the management.
In general, there will be a mutually agreed document on variable pay, and both statutory bonus and variable pay are different. The management cannot avoid it once it is agreed upon and documented.
Thanks and regards,
Kameswarao
From India, Hyderabad
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Dear,
I am unable to understand your message clearly. If someone's basic salary + Dearness Allowance (DA) is less than 10k per month, are they entitled to a bonus?
In my current Cost to Company (CTC), the variable component is 15k. I am eligible for 8k, but as my basic salary is less than 10k, I am receiving 700 Rs per month as statutory bonus. However, in the bonus letter I received today, the company stated that they paid me 8.4k as statutory bonus. They deducted that amount from my Variable Component (VC), resulting in a total bonus received of 0 Rs.
Is this correct? Is the statutory bonus related to the Variable Component?
Thank you.
J. S. Malik
From India
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I am unable to understand your message clearly. If someone's basic salary + Dearness Allowance (DA) is less than 10k per month, are they entitled to a bonus?
In my current Cost to Company (CTC), the variable component is 15k. I am eligible for 8k, but as my basic salary is less than 10k, I am receiving 700 Rs per month as statutory bonus. However, in the bonus letter I received today, the company stated that they paid me 8.4k as statutory bonus. They deducted that amount from my Variable Component (VC), resulting in a total bonus received of 0 Rs.
Is this correct? Is the statutory bonus related to the Variable Component?
Thank you.
J. S. Malik
From India
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