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Last Word

Last Word

Recent salary surveys suggest that most firms are looking at 'variable' pay as a major component of salary hikes this year.

Recent salary surveys suggest that most firms are looking at 'variable' pay as a major component of salary hikes this year. Variable or performance-linked pay— up to 20 per cent at the junior level and up to 60 per cent at senior levels—allows a company to vary the take-home salary depending on how well it is doing.

Remuneration terms and what they mean

Variable pay
This is given once a year and depends on how the boss evaluates your performance.

Revenue-linked pay
This is linked to the growth in margins or profit of the company.

Retention bonus
Given to retain people critical for a firm's growth but likely to leave.

Deferred payment
A part of the salary or variable pay deferred citing financial pressure.

Employee stock options
A retention tool wherein employees are offered the firm's equity.