What is fixed and variable pay in salary?

Fixed Pay is what is defined as fixed and you will get the same salary as was mentioned in the offer letter. So variable pay is part of your salary package. You will get your fixed pay at the end of every month but you will get your variable pay once in a quarter/half-year/year (may differ from company to company).

What is variable pay in salary structure?

Variable pay, also known as performance pay, is used to recognise and reward employee contribution above and beyond their normal job requirements, towards company productivity, profitability, quality and the like.

What is meant by fixed pay in salary?

Fixed Pay is the fixed amount of money paid by an employer to its employees in exchange for services received in the form of a fixed salary. Fixed Pay is the accrual salary mentioned in the salary slip with basic and multiple allowances. It is the same amount received every month by the employees.

What is fixed salary and basic salary?

Basic salary is a rate of pay agreed upon by an employer and employee and does not include overtime or any extra compensation. 18,000 as fixed salary in addition to other allowances such as House rent allowance, conveyance, communication, dearness allowance, city allowance or any other special allowance.

What is variable pay?

Variable pay is employee compensation that changes. It is often used to recognize and reward employee contribution toward company productivity, profitability, teamwork, safety, quality, or some other metric deemed important by senior leaders.

What is a variable pay program?

Variable pay programs are an increasingly popular mode of compensation in today’s business world. These programs, which are also sometimes referred to as “pay-for-performance” or “at-risk” pay plans, provide some or all of a work force’s compensation based on employee performance or on the performance of a team.

What is a variable compensation plan?

Variable compensation plans. The variable compensation plan contains the rules, calculation methods, and default values for the calculation of variable compensation for enrolled employees. When you create a variable compensation plan, you must set the variable compensation type.