What’s the difference between a variable pay and bonus ?
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I have a question regarding gratuity eligibility for permanent employees. What is the minimum service requirement to become eligible for gratuity? Is an employee eligible after completing 4 years and 240 days of continuous service, or is it mandatory to complete a full 5 years of continuous service?
If you're taking about Annual Bonus then it is also like Variable where it depends on Company and your performance Maybe the time of payment can be varied...some pays it Semesterly or some Yearly If this is Joining Bonus or Relocation bonus it will be paid to you in 1st Month salary after tax deduction
So one should prefer VP over Bonus ? Considering bonus is paid yearly and not a mandatory compensation.
bonus you will get 100% and it is guaranteed. Variable pay may or may not be given to you , i mean youn can get 0% to 100% of your variable pay on the basis of other factors like your performance, companys performance etc
Bonus is not guaranteed either, I don’t think it’s mentioned in the offer letter too.
Variable pay is part of your CTC and bonus is outside your CTC