What is the variable component?
The variable or opportunity component is a portion of your CTC that’s determined by your performance. Hence it is called a Performance Linked Incentive on Keka.
When will the component be calculated?
Starting 2023, the variable amount will be calculated on a quarterly basis. And, it will be paid on a half-yearly basis (in January and August).
What happens if an employee leaves before the payout date?
The variable amount is calculated on a quarterly basis because it is linked to the company or division meeting quarterly targets. In case an employee leaves before the payout date, they will receive the pay that they’ve earned till the last date of working. It is important that the performance score is calculated before the employee exits.
How will the amount be calculated?
The amount is decided based on your performance and will be a part of your CTC breakup. It will be shared at the time of joining or during your appraisal meeting. You will have to achieve a score of 75% or above to be eligible to receive the amount.
For example:
| KRA | Opportunity Payout [KRA Based, Calculated Quarterly] |
| 100% | 1 x Quarterly Variable |
| 75% | 0.75 x Quarterly Variable |
| 90% | 0.9 x Quarterly Variable |
| 120% | 1.2 x Quarterly Variable |
| 133% | 1.33 x Quarterly Variable |
| 74.9% or below | 0 |