V

Variable Pay

Definition

A portion of compensation that is performance-linked and may vary from period to period based on predefined goals or business outcomes.

Context & Importance

Drives employee motivation, aligns rewards with performance, and helps control fixed costs.

Use Cases

• Quarterly sales incentives
• Annual bonus based on business performance

Related Concepts

Incentives, performance bonus, total compensation.

TankhaPay Relevance

Configure performance-based variable pay rules and integrate payout data into payroll runs.