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Preethi (consultant)     16 April 2014

Payment of salary (sales team) on basis of target achieved

Can Management decide to pay salary of selected sales employees in proportion to percentage of target achieved in the month. The balance will be paid on achievement of quarter target.Is it legal?

If yes than does the Company have to get some document signed by them.




 3 Replies

Kumar Doab (FIN)     16 April 2014

The person employed on wages has to be paid his earned wages (salary).

The payment of wages can not be delayed even by a day and has to be made on day for payment of wages.


The employer can not pay less than Min. Wages!


The company can formulate its policy for incentive/commission. The announcement of incentive/commission becomes a promise and promised amounts have to be paid.

1 Like

Preethi (consultant)     02 May 2014

Thank you.

We have found some of the senior members have very high basic pay- 40% of ctc. Can we reduce the basic pay of such senior employees (Manager/General Manager level)?

Secondly their contribution is 12% of actual basic. Can we reduce that to 780/-.


Kumar Doab (FIN)     04 May 2014

The 40% was found to be logical that is why it was kept 40%. 


You are looking at your interest and not at the interest of employee.



PF authorities shall not agree for reduction in PF contribution.

You shall face notices and penalties. Avoid it.

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