<p>The idea of linking the pay to performance with the new age variable pays, would eat up 50-55 percent of India Inc. salaries from 2020. reported Money Control.</p>.<p>With a drop in corporate earnings in the September quarter, an increasing pressure looms over companies to link a large amount of the pay to performance, which means that the variable pay would be raised up to 50-55 percent of the cost to company (CTC) in 2020.</p>.<p>“The variable component of the CTC also takes into account how a company performs and not just an individual employee’s performance. Hence, it makes sense to have a larger quantum of variable pay,” chief human resource officer at a large financial services firm told Money Control.</p>.<p>The report further stated that if there's a rise in variable pay, the yearly in-hand compensation could be much lower. "This is because even if an employee completes all targets and the company performs well, only 80-85 percent of the variable pay will be given," said the report.</p>.<p>"Instead of hiking the annual salary substantially, firms will only increase a large chunk of the variable portion in 2020. So while on paper an employee's CTC goes up, the actual salary may stay constant," Money Control was informed.</p>.<p>Among all the sectors, this would hit BFSI, FMCG/retail and e-commerce.</p>
<p>The idea of linking the pay to performance with the new age variable pays, would eat up 50-55 percent of India Inc. salaries from 2020. reported Money Control.</p>.<p>With a drop in corporate earnings in the September quarter, an increasing pressure looms over companies to link a large amount of the pay to performance, which means that the variable pay would be raised up to 50-55 percent of the cost to company (CTC) in 2020.</p>.<p>“The variable component of the CTC also takes into account how a company performs and not just an individual employee’s performance. Hence, it makes sense to have a larger quantum of variable pay,” chief human resource officer at a large financial services firm told Money Control.</p>.<p>The report further stated that if there's a rise in variable pay, the yearly in-hand compensation could be much lower. "This is because even if an employee completes all targets and the company performs well, only 80-85 percent of the variable pay will be given," said the report.</p>.<p>"Instead of hiking the annual salary substantially, firms will only increase a large chunk of the variable portion in 2020. So while on paper an employee's CTC goes up, the actual salary may stay constant," Money Control was informed.</p>.<p>Among all the sectors, this would hit BFSI, FMCG/retail and e-commerce.</p>