How to calculate the variable part?

How to calculate the variable part?

How to calculate the variable part?

Calculation of the variable portion salary The mode of calculation of the variable part therefore results from an agreement between the employer and the employee, it can be a percentage calculated on the turnover made by the employee, it can be a fixed commission which is perceived when the goals are achieved.

Which bonuses do not count for retirement?

Your premiums do are not taken into retirement account base. To know: the bonuses civil servants (within the limit of 20% of the index salary) make it possible to acquire rights under of the Retreat additional of the civil service (RAFP).

What salaries are taken into account for the calculation of the pension?

To be eligible for the full rate, you must be 62 years old and have validated the required number of quarters, or 67 years old with no quarters condition. Your retirement base rate at full rate is equal to 50% of your salary annual average, within the limit of the Pass.

How Should Goals Be Set?

1/ The principle: the employer can set the Goals unilaterally. According to a classic case law of the Court of Cassation, the Goals of an employee can to be defined by the employer within the framework of his management power [1].

What is the principle of variable compensation?

Variable compensation may appear, for the employee, as an attractive and more favorable supplement than simple fixed compensation. But what are the rules laid down by law to regulate these provisions? The principle in terms of salaried remuneration is the existence of a minimum wage.

How to fix the variable remuneration of an employee?

Note: the methods for setting the employee’s variable compensation must not result from the sole will of the employer, but from objective elements beyond his control.

Can the employee request payment of the variable compensation?

Indeed, the absence of payment of the variable remuneration which results from the maneuver of the employer, which prevented the presence of the employee in the company because of the dismissal is considered unjustified. The employee is therefore entitled to request payment of this variable remuneration ( Cass. soc., , n° 18-20.156 ).

What is variable compensation?

This variable part therefore presupposes a degree of uncertainty, both for the employer and for the employee, because it is linked to the notion of performance. This can be individual, or collective at the level of a team, or even the whole company. Variable pay is often seen as a motivating factor for staff.