Dear Vikesh,
Performance Bonus is called as variable Bonus hence 100% can not be considered as part of CTC.
There are two types of performance Bonus
Type1 – Performance Bonus based on Individual Performance – If employee performs he/she will get the Performance Bonus as per given / recommended calculations.
Type2 – Performance Bonus based on Individual (50%) & Company(50%) Performance – Employee’s performance will be calculated separately and company performance will be calculated based on goals and achievements.
Performance Bonus is very relative term, if performance shown then only this will be paid, hence 100% it can not be part of CTC. You can consider min-max % which employee must perform (i.e. either 50%, 60% or 70%) during bonus period. And based on companies past history of performance we can always fix min-max % which can be considered as part of CTC. (Again Performance Bonus Scheme need to be shared with candidate so that it will be clear to candidate that it is variable and not fixed)
Finally Performance Bonus can be shown as part of CTC, but historical % need to be shown i.e. 100% Performance Bonus is not possible every time, hence showing larger picture and not paying will not be justify hence we can consider min-max% of Performance Bonus as part of CTC.
BrainLight HR Solutions
From India, Mumbai
18Performance Bonus is called as variable Bonus hence 100% can not be considered as part of CTC.
There are two types of performance Bonus
Type1 – Performance Bonus based on Individual Performance – If employee performs he/she will get the Performance Bonus as per given / recommended calculations.
Type2 – Performance Bonus based on Individual (50%) & Company(50%) Performance – Employee’s performance will be calculated separately and company performance will be calculated based on goals and achievements.
Performance Bonus is very relative term, if performance shown then only this will be paid, hence 100% it can not be part of CTC. You can consider min-max % which employee must perform (i.e. either 50%, 60% or 70%) during bonus period. And based on companies past history of performance we can always fix min-max % which can be considered as part of CTC. (Again Performance Bonus Scheme need to be shared with candidate so that it will be clear to candidate that it is variable and not fixed)
Finally Performance Bonus can be shown as part of CTC, but historical % need to be shown i.e. 100% Performance Bonus is not possible every time, hence showing larger picture and not paying will not be justify hence we can consider min-max% of Performance Bonus as part of CTC.
BrainLight HR Solutions
From India, Mumbai
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