Is Performance-Based Payment A Handle To Cheat Employees In MNCs & Private Sectors?

Disbursing payment on the basis of performance was an idea expressed by the central government a few months ago. Though it has not been implemented in government offices both at the centre and state level, private sectors and MNCs in most metro and cosmopolitan cities have brought this rule into play. Most of the allowances like house rent, conveyance and medical facilities have been cut short and have been linked to performance. The result is most of the employees in these private are drawing less payment than they use to draw last year.

Increments too have been linked to the will and wish of the company's departmental boss or HR. Hence those who can impress their immediate boss or the HR carry home a hefty amount. I know of a multinational company in Delhi where of the two contract managers one takes home Rs.75000 per month only because he is in the good book of his immediate boss while the other gets only Rs.30,000 per month.

House allowance and medical allowance in the human right of the employees as most of them stay away from home and in rented houses and each month, a fixed amount like Rs.3000 or 4000 is deducted from their payment in the name of health insurance. Rarely do the employees benefit from this health insurance. These facilities too have been linked to performance. The result is most lower and middle-level employees payments have been reduced which is illegal but those who have framed this rule(managers) are drawing more the lakh as salary. The discrepancy between the salary amount is very high. In most IT companies while a middleware software engineer is drawing just Rs.40,000 per month his manager is taking home more than a lack. To manage all the cash crunch in the company it is the lower and middle-level engineers who are targetted and deprived of their dues 

In most IT companies while a middleware software engineer is drawing just Rs.40,000 per month his manager is taking home more than a lakh. To manage all the cash crunch in the company it is the lower and middle-level engineers who are targetted and deprived of their dues. 

No doubt these companies have framed an internal office rule of not discussing salaries. Performance based salary has given these private sector managers, HRs and bosses the handle to cheat their lower and middle-level employees which I think should be taken serious note of by the company management in order to retain skilled workers or employees.