The variable earnings in the calculate Earnings method is a local variable. It is usually paid in the form of incentive pay, bonus, or commission.
Variable compensation typically represents an employer paying an employee based on performance results. Employees typically receive this type of compensation in addition to their basic salary.
Usually paid in the form of performance bonuses, bonuses or commissions. It is determined based on two main factors: employee performance and overall company performance. Most companies include a process of goal setting, based on which variable payments are made. Variable compensation is usually expressed as a percentage of a fixed salary. At the junior level, variable compensation percentages typically range from 10% to 15% of fixed compensation. As the employee is promoted, the variable salary component increases. So the numbers fluctuate from 15% to 30% at the middle level and rise from 30% to 50% at the upper level.
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