Variable Pay Meaning. Base salary on the other hand is fixed and paid out regardless of employees meeting their goals. Fixed pay is generally decided on the basis of what the person is worth it depends on his or her capability.
Variable pay is compensation that is contingent on discretion performance or results. Variable pay is the portion of sales compensation determined by employee performance. The other components include fixed pay salary and all cash allowances retirals mostly statutory and pension-related such as PF gratuity benefits and perquisites leaves medical car insurance etc and Esops mainly stock.
It can also stand for the amount of money that you get towards your incentive for the work that you have done at the office.
When employees hit their goals variable pay is provided as a type of bonus incentive pay or commission. Base salary on the other hand is fixed and paid out regardless of employees meeting their goals. A better way to motivate employees and reward top performers is to shift to variable pay rewardslump-sum bonuses for goal achievement. The other components include fixed pay salary and all cash allowances retirals mostly statutory and pension-related such as PF gratuity benefits and perquisites leaves medical car insurance etc and Esops mainly stock.
