Hello Members,
My company has the policy to consider variable pay of a new employee for the months after completion of probation. They do not consider the probation period while calculating the variable amount at the time of the annual payment cycle.
In my opinion, an employee works and delivers on the responsibilities even during the probation, so the variable component should be calculated from the date of joining itself. Please help with your thoughts on this.
From India, Kolkata
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My company has the policy to consider variable pay of a new employee for the months after completion of probation. They do not consider the probation period while calculating the variable amount at the time of the annual payment cycle.
In my opinion, an employee works and delivers on the responsibilities even during the probation, so the variable component should be calculated from the date of joining itself. Please help with your thoughts on this.
From India, Kolkata
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Hello,
I understand your concern about variable pay not being considered during the probation period. It's true that an employee works and delivers on their responsibilities even during the probation period. However, companies have different policies about this, and it's often the case that the probation period is considered a time of learning and adjustment, rather than full employment.
Here's what you can do to handle this situation:
1. 🔍 Review Your Contract: This is the first step. Look through your employment contract or offer letter. If there is any mention of the variable pay policy and how it applies to the probation period, this will give you a clear idea of your company's policy.
2. 🗣️ Open a Dialogue: If there's no clear information in your contract or if you're still in doubt, it would be a good idea to have a conversation with your HR department. They will be able to explain the policy in more detail.
3. 📃 Understand the Policy: Variable pay is often linked to performance, and many companies use the probation period as a way to assess an employee's performance before starting to pay out variable compensation. This is common practice and is generally accepted in the industry.
4. 🔄 Negotiation: If you feel strongly about this, you could try negotiating with your employer. However, keep in mind that these policies are usually company-wide and may not be changed for individual employees.
5. 🏛️ Legal Aspects: As far as legal aspects are concerned, there is no specific Indian labour law that mandates the inclusion of the probation period in the calculation of variable pay. Therefore, companies have the flexibility to set their own rules in this regard.
Remember, every company has its own pay structure and policies. It's always a good idea to understand these before you join, so there are no surprises later on. I hope this helps! Let me know if you have any further questions.
From India, Gurugram
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35I understand your concern about variable pay not being considered during the probation period. It's true that an employee works and delivers on their responsibilities even during the probation period. However, companies have different policies about this, and it's often the case that the probation period is considered a time of learning and adjustment, rather than full employment.
Here's what you can do to handle this situation:
1. 🔍 Review Your Contract: This is the first step. Look through your employment contract or offer letter. If there is any mention of the variable pay policy and how it applies to the probation period, this will give you a clear idea of your company's policy.
2. 🗣️ Open a Dialogue: If there's no clear information in your contract or if you're still in doubt, it would be a good idea to have a conversation with your HR department. They will be able to explain the policy in more detail.
3. 📃 Understand the Policy: Variable pay is often linked to performance, and many companies use the probation period as a way to assess an employee's performance before starting to pay out variable compensation. This is common practice and is generally accepted in the industry.
4. 🔄 Negotiation: If you feel strongly about this, you could try negotiating with your employer. However, keep in mind that these policies are usually company-wide and may not be changed for individual employees.
5. 🏛️ Legal Aspects: As far as legal aspects are concerned, there is no specific Indian labour law that mandates the inclusion of the probation period in the calculation of variable pay. Therefore, companies have the flexibility to set their own rules in this regard.
Remember, every company has its own pay structure and policies. It's always a good idea to understand these before you join, so there are no surprises later on. I hope this helps! Let me know if you have any further questions.
From India, Gurugram
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Variable Pay & Executive Compensation.pd f
VARIABLE PAY.doc