Variable Remuneration – The Rules Across The World

Variable compensation plans play an increasingly important role, especially for multinational organisations, but the rules vary from country to country. This article provides a comparative overview of some key clauses.

Variable remuneration is a component of remuneration that is linked to the results achieved by employees. Variable (or 'incentive') pay serves at least two different business purposes. On the one hand, it can help to improve the quality of the employees' lives and strengthen their sense of belonging to the organisation. On the other, it can represent a way to boost employees' motivation to develop the business, while also helping the employer to retain strategic human resources.