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Rising Star
Let's say ur CTC is 55 lpa. Out of which, say around 5 lakhs has been allocated into annual variable pay..
When people say 70-120%, it means in every March, Ford would generally pay anywhere between 70% of the 5 lakhs (350000) and 120% of the 5 lakhs (600000). That's the meaning.. And, that %Tage factor gets decided depending on company's and your performance..
So, take 2023, company's perf factor was 122%, and in my appraisal, I received a perf factor of 105%, that means my final variable payout would be 105% of the (122% of the 5 lakhs) = 640500/-. So, in March, I received 640500 + monthly salary combined..
Hope this helps.
Rising Star
Of course brother, every rupee that hits ur bank account gets some tax levied. :)
In hand would be around 9 lakhs.