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how much variable pay we atually get?

 
Greenhorn
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Hi,

Some companies in India has 40% variable pay in the CTC. So the overall package looks good on paper but how much % they actually give to employee???

Please give some inputs.

Thanks.
 
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One rarely reached the 100% percent of the variable pay. for most of the guys it's between 30% to 60%.

AK
 
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Its common in India.No issues , it helps to make the basic less and therefore less tax.
 
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it helps to make the basic less and therefore less tax.



How does reducing your basic salary impact the tax you have to pay?
 
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Originally posted by Rahul Bhattacharjee:
Its common in India.No issues , it helps to make the basic less and therefore less tax.



You need to pay tax on the variable pay too. It wont help you in any way, it helps employer to reduce attrition rate.
 
Rahul Bhattacharjee
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Originally posted by Vijay Chouhan:


How does reducing your basic salary impact the tax you have to pay?



Basic is 100% taxable.But in variable pay there are components like HRA , Medical and other stuffs in which you can save tax as per respective rules.For example if you show rent receipt then that amount that you are paying becomes tax less.Similarly for medical and other stuffs.But there is no such thing for basic.It comes directly under the tax slab.
 
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Originally posted by Rahul Bhattacharjee:


Basic is 100% taxable.But in variable pay there are components like HRA , Medical and other stuffs in which you can save tax as per respective rules.For example if you show rent receipt then that amount that you are paying becomes tax less.Similarly for medical and other stuffs.But there is no such thing for basic.It comes directly under the tax slab.



HRA, Medical Allowance, LTA, Dearness Allowance, Transport/Conveyance Allowance etc doesn't come under variable pay. They are fixed in your salary structure.
 
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Rahul: I think he's talking about variable pay, which is linked to the a person+company performance and not HRA and all.

Basically, one can expect 40-70% of that amount , just ask the oldies in the company, they will give you better estimates
 
ankur rathi
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Originally posted by KJ Reddy:


You need to pay tax on the variable pay too. It wont help you in any way, it helps employer to reduce attrition rate.



How it helps???
I think, employee will be happy if there is ZERO variable and all fixed salary.
 
Kj Reddy
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Originally posted by Rahul Bhattacharjee:


Basic is 100% taxable.But in variable pay there are components like HRA , Medical and other stuffs in which you can save tax as per respective rules.



Rahul, the above components are fixed and part of Benefit Plan(different companies have different names). The variable pay is some thing we can say bonus(different companies have different names) and most companies link this with your performance and company performance.

I got 90% to 120% of variable pay in most of the cases.
 
Kj Reddy
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Originally posted by ankur rathi:


How it helps???
I think, employee will be happy if there is ZERO variable and all fixed salary.



Akur, I said it will not help employee in any way and yes having zero variable pay is helpful.

But for employer it helps to reduce attrition rate.
 
ankur rathi
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Originally posted by KJ Reddy:


Akur, I said it will not help employee in any way and yes having zero variable pay is helpful.

But for employer it helps to reduce attrition rate.



 
Rahul Bhattacharjee
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Originally posted by KJ Reddy:


Rahul, the above components are fixed and part of Benefit Plan(different companies have different names). The variable pay is some thing we can say bonus(different companies have different names) and most companies link this with your performance and company performance.

I got 90% to 120% of variable pay in most of the cases.



Ok guys , I got it.Sorry for misleading the thread.
Actually from the start of my career I been working with one company and here variable pay is something which is other than your basic and bonus is sperate.

Variable word is also justified for our company too as because the pay would varry according the proofs that I am able to furnish.
 
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