Hi Team, What is you variable payout policy for non-sales hires .Assuming they have an annual variable pay. Do you prorate and pay end of the current year based on the DOJ of the employee or do you pay at the completion of one year or wait until the next appraisal cycle post one year completion. What do you'll do?

Hi Vidhya, variable pay can be paid annually basis the rating of an employee. if someone gets a 5 rating for example then they could get 150 percent of variable: Sharing slab here: 5 rating- 150% 4 rating - 125% 3 Rating - 100% (meets expectation) 2- Rating -75% 1 Rating- 0%

Hey Vidhya, Variable can be paid out on a quarterly, half yearly or yearly basis during PA The right way is Pro rater basis only.

Thank you Vithika and Ankita. My question is more about when do you pay out. For eh . Employee joins in July,our performance year is Jan-Dec. will you pro rate and pay in Dec the same year or in June next when he completes a year?

Hi Vidya. At Nuveda, some of our non sales team members have a variable pay component in their CTC. 50%of it is on business performance and 50% on individual performance (meeting targets as per KRA). There is a distribution of target achievement and variable pay %. It spreads from 80% target and 60% VP to 110%+ target and 125% VP range. We set these targets on quarterly basis and the payout is made 1 month after the quarter.

Hi Vidhya, In my current org employee is eligible for variable pay if he/she joins before November month. Variable pay for us is paid out in the month of March every year and it will be on pro rata basis if the an employee has not completed year and joined before November.

Thank you everyone. This is most helpful!