Hi,
This is going to happen for me in Chennai .My variable pay is part of CTC. My employer considers Jan to Dec as a FY. I resigned on Jan 2 week. My employer usually pays Variable during the feb month. Now I have receive a message from HR saying I am not eligible for the Bonus and I need to server the notice which is until March.
Can\'t I do anything now ? Do I need to forget that amount ?
From India, Chennai
This is going to happen for me in Chennai .My variable pay is part of CTC. My employer considers Jan to Dec as a FY. I resigned on Jan 2 week. My employer usually pays Variable during the feb month. Now I have receive a message from HR saying I am not eligible for the Bonus and I need to server the notice which is until March.
Can\'t I do anything now ? Do I need to forget that amount ?
From India, Chennai
Dear Vijay,
Please Refer the below points:-
1) Variable payment :- If it is during your employment, then its your rights to get it & spl. when it is part of your CTC.
2) Notice period:- First check T&C of your appointment letter, what would be notice period..? & whether did you serve accordingly,...? if yes, then no one can ask you to wait.
3) Bonus:- As per bonus act. if your gross salary is more than 10 k p.m. then your not eligible for bonus. therefore, its company policy if they still want to pay or not..?
I hope your points are clear by above points.
Regards,
Tushar Swar
From India, Mumbai
206Please Refer the below points:-
1) Variable payment :- If it is during your employment, then its your rights to get it & spl. when it is part of your CTC.
2) Notice period:- First check T&C of your appointment letter, what would be notice period..? & whether did you serve accordingly,...? if yes, then no one can ask you to wait.
3) Bonus:- As per bonus act. if your gross salary is more than 10 k p.m. then your not eligible for bonus. therefore, its company policy if they still want to pay or not..?
I hope your points are clear by above points.
Regards,
Tushar Swar
From India, Mumbai
I agree with the answer. But what in case of incentive, which an employee earned by his/her hard work during one financial year and then resigned from the service? Kindly suggest.
From India, Delhi
From India, Delhi
Unless otherwise specified to the effect that a left employee would not get the benefit of variable pay, this component of pay should be paid during the notice period also. This is because, variable pay is something that the employee has earned by working or putting something extra and the amount earned will not disappear from the books just because the employee has left particularly when the amount is shown as part of remuneration in the CTC statement offered by the company.
At the same time, the group incentives which are normally given to motivate employees to stay with the organisation will be a sum which will be divided among the members of the group and while dividing among the group the left employee shall not be given a share but the others will be getting an increased share. Here the logic is that a person who has decided to leave may not be putting the same effort that others do and to the extent he will not be eligible for any incentive for the group. However, variable pay is based on individual's quantified and tangible results and it is unfair to hold it and take it to the profit of the company.
Madhu.T.K
From India, Kannur
At the same time, the group incentives which are normally given to motivate employees to stay with the organisation will be a sum which will be divided among the members of the group and while dividing among the group the left employee shall not be given a share but the others will be getting an increased share. Here the logic is that a person who has decided to leave may not be putting the same effort that others do and to the extent he will not be eligible for any incentive for the group. However, variable pay is based on individual's quantified and tangible results and it is unfair to hold it and take it to the profit of the company.
Madhu.T.K
From India, Kannur
Dear Tushar Swar
As you have mentioned that "if your gross salary is more than 10 k p.m. then you are not eligible for bonus." I just want to know that it is applicable on gross or on basic. As far I know bonus is not applicable if your basic salary is more than 10k. But you have mentioned gross salary. Would you please clarify.
Regards
Dinesh Kumar
From India, New Delhi
As you have mentioned that "if your gross salary is more than 10 k p.m. then you are not eligible for bonus." I just want to know that it is applicable on gross or on basic. As far I know bonus is not applicable if your basic salary is more than 10k. But you have mentioned gross salary. Would you please clarify.
Regards
Dinesh Kumar
From India, New Delhi
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