Performance linked incentive
Nilanjan Bhattacharaya
(Querist) 14 May 2013
This query is : Resolved
I have been working in an organisation for last 3.5 years and my CTC component shows a significant amount set aside as PLI, Performance Linked Incentive.Based on the current year performance, both of individual as well as the organisation, the PLI disbursement percentage is decided and disbursed at the end of the year. Incase lesser amount disbursed in lieu of PLI erodes the CTC as promised.
Would like to know if this practise is legitimate since many organisations are following this process in reducing employee benefits and compensation.
Kindly Advice.
Rgds,
NB- Kolkata
Raj Kumar Makkad
(Expert) 14 May 2013
The incentives are over and above the settled remuneration so even if PLI is at lesser side, it shall not reduce the promised CTC.
In some organizations, the appointment letters are tectfully issued to the employees wherein the term of PLI is linked with the promised CTC which means that if performance is not found up to mark for a particular period then the promised CTC shall be deducted proportionately. This practice is not legal.
