What Is Fixed And Variable Pay In Offer Letter ?
When you selected in the interview, they will send an offer letter to you. In that offer letter they provide some information including with the salary details as a fixed pay or variable pay.Some people may don’t have the proper idea about the fixed pay and variable pay. So, we provide some information about fixed and varriable pay.
- There is a difference between variable pay and fixed pay. The variable will be fluctuate at each and every step but the fixed pay should be constant upto some time period.
- Fixed salary is also called as basic salary. It is a fixed amount that the company provides you to on a particular date in every month. The fixed salary is a simple amount and be constant.
- In the fixed pay there may be a chance to increase your salary in the form of hike which will be permanent every month.
- A salary which is varying throughout the year is called as variable salary.Here, company offers variable salary to motivate the employees to work hard and get succeed in his given work with in the time.
- As clearly it is stated as variable pay is provided by the company on the basis of employees performance.By giving variable pay company get more work, safety, quality, better productivity and finally it gets good name and also more profit.
- Here the amount may varies depending on the type of work done by you.
- Company offers you to the variable salary in different forms. Its may be a bonus, profit sharing, compensation, cash, goods or as in promotion.