Variable Pay - I joined a startup
1 year ago
Last year I joined a startup. They offered me the net pay as my previous company but added an extra variable as an increment and said that this is a fixed variable which will be paid out after the financial year end. So I agreed to it as I thought it will be a saving for me. Now in May they are saying it was the variable pay and it will not be paid as the company is not in profit. What can be done as its a huge amount for me.
A.In absence of the contents of your offer letter, it may not be viable to comment on your query.
However, it is to clarify that the term Fixed and variable is usually used for Dearness Allowance is perquisite payable along with basic pay having a pay band i.e, a slab of increment payable on completion of a year of service.
But from the contents of query, it appears that the word Fixed and variable meant for annual increments that varied depending upon the annual turnover and profit of the company and it was misunderstood by default at your end. So take care of tricky words used by employers having adverse effects later on whenever you accept any offer letter.
However, it is to clarify that the term Fixed and variable is usually used for Dearness Allowance is perquisite payable along with basic pay having a pay band i.e, a slab of increment payable on completion of a year of service.
But from the contents of query, it appears that the word Fixed and variable meant for annual increments that varied depending upon the annual turnover and profit of the company and it was misunderstood by default at your end. So take care of tricky words used by employers having adverse effects later on whenever you accept any offer letter.
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