## My Ex-Employer Cut My Bonus: Is This Fair? I joined my previous company in India with a promised CTC that included a Performance-Linked Incentive (PLI). Over time, the company increased the PLI portion of my CTC. Although I negotiated the total CTC initially, my appointment letter had a clause mentioning that CTC could vary based on both my and the company’s performance. Despite exceeding expectations at work, the company’s performance lagged. They only paid 65% of the promised PLI, effectively reducing my CTC. Is this legally acceptable? I’m considering filing a case against them. Additionally, I left the company on February 1st, 2016, after working for 10 months in the fiscal year 2015-16. The company refuses to pay my proportionate PLI as I didn’t complete the full year. Since PLI comprised 28% of my CTC, this would mean a significant loss for me. Can they legally withhold my proportionate PLI?

Last updated: August 25, 2025 1:13 pm

1 year ago

Law Forum › Category: Labour & Service › ## My Ex-Employer Cut My Bonus: Is This Fair?

I joined my previous company in India with a promised CTC that included a Performance-Linked Incentive (PLI). Over time, the company increased the PLI portion of my CTC. Although I negotiated the total CTC initially, my appointment letter had a clause mentioning that CTC could vary based on both my and the company’s performance. Despite exceeding expectations at work, the company’s performance lagged. They only paid 65% of the promised PLI, effectively reducing my CTC. Is this legally acceptable? I’m considering filing a case against them.

Additionally, I left the company on February 1st, 2016, after working for 10 months in the fiscal year 2015-16. The company refuses to pay my proportionate PLI as I didn’t complete the full year. Since PLI comprised 28% of my CTC, this would mean a significant loss for me. Can they legally withhold my proportionate PLI?

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Apni Law Staff asked 1 year ago

## My Ex-Employer Cut My Bonus: Is This Fair?

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Apni Law Staff answered 1 year ago

Indian law allows employers to adjust performance-based bonuses based on company performance, even if your individual performance is excellent. Regarding your proportionate PLI, the company may not be legally obligated to pay it if your appointment letter mentions a full year requirement for bonus eligibility.