What is Monthly Variable Component?
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I have worked in many permament and contract jobs before but this is the first time I sign a letter of appointment with a company which states that:
"Your salary is $xxx a month of which 12% amounting to $yyy is monthly variable component."
When I ask the HR staff what is this monthly variable component(mvc) about, she reply that it is just a policy by ntuc which states that companies can take away the 12% monthly variable component during bad times.
She say that so far the company setup 20 years already they have never taken away the 12% mvc before.
I have never heard of what ntuc having such a crap rule that 12% of your salary is monthly variable component de leh.
Siao liao I got a feeling that I got cheated already. Because this job need to sign a 6 months contract and I can't leave within 6 months or I have to pay 1 month salary as compensation.
My salary is not very high also, just market rate only for a diploma holder.
I have already signed the letter of appointment and going to start work in november.
Now I am scare that the company will come out stunt say that they having financial problem and they have to deduct the 12% monthly variable component than I also lan lan no choice but to stay with them for 6 months..
You think such a situation is possible?
Anyone here sign such a letter of appointment say what 12% is monthly variable component?
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Its very common since a few years ago. This is done so that in really bad times, companies have the option to use that MVC instead of fully retrenching. Mine also had a 10% MVC component. Not many companies actually utilised it actually. In really bad times, utilising that 12% is not gonna help alot.
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Nobody mentioned much about this MVC during this recession.
Instead they came up with another scheme, the JCS.
Go figure.
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Originally posted by gasband:
Its very common since a few years ago. This is done so that in really bad times, companies have the option to use that MVC instead of fully retrenching. Mine also had a 10% MVC component. Not many companies actually utilised it actually. In really bad times, utilising that 12% is not gonna help alot.
Than the company also can abuse this system...Say if the company feel that the candiate salary is too high they can bluff him and accept him. Few months later than they say now is bad times than take away the MVC..
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$yyy?
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Originally posted by fireng:
Than the company also can abuse this system...Say if the company feel that the candiate salary is too high they can bluff him and accept him. Few months later than they say now is bad times than take away the MVC..
Not really. The MVC if cut due to bad times is supposed to be applied to all employees in the company not just an individual. So if they only cut your MVC their position is not defensible.It is really quite common to have the MVC. Many companies adopted it because the govt/ntuc pushed for it way back in the late 80s I think, sometime after the 87 recession.
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Originally posted by Hazel Poa:
Not really. The MVC if cut due to bad times is supposed to be applied to all employees in the company not just an individual. So if they only cut your MVC their position is not defensible.It is really quite common to have the MVC. Many companies adopted it because the govt/ntuc pushed for it way back in the late 80s I think, sometime after the 87 recession.
What if they only cut my MVC but bluff me that everybody MVC got cut and they all gang up and bluff me?
Cos I don't get to see the accounts and their salary so I also don't know if they are lieing..
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Originally posted by fireng:
What if they only cut my MVC but bluff me that everybody MVC got cut and they all gang up and bluff me?
Cos I don't get to see the accounts and their salary so I also don't know if they are lieing..
cannot be ba cos it is the company's policy. this scheme is suggested by the govt instead of cutting employee's cpf during bad times (which they did in the past and it caused a few upsets), they set aside a 10% to be cut from your pay (that is MVC) during bad times. If the company is doing well, it will give a 13th month pay to their employees. -
Originally posted by mlmersrlosers:
cannot be ba cos it is the company's policy. this scheme is suggested by the govt instead of cutting employee's cpf during bad times (which they did in the past and it caused a few upsets), they set aside a 10% to be cut from your pay (that is MVC) during bad times. If the company is doing well, it will give a 13th month pay to their employees.This new company that I am going to work does not have 13th month bonus. They only have variable bonus which depends on your performance and the performance of the company..
This company sounds like a scam leh. Sign 6 months contract, no 13 month bonus, got 12% monthly variable component etc,,
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Originally posted by fireng:
This new company that I am going to work does not have 13th month bonus. They only have variable bonus which depends on your performance and the performance of the company..
This company sounds like a scam leh. Sign 6 months contract, no 13 month bonus, got 12% monthly variable component etc,,
Dun worry for now. every company have their own policy.
Since u signed the thing u have to face it. Just start work and see how things go. -
Originally posted by ivertan00:
Dun worry for now. every company have their own policy.
Since u signed the thing u have to face it. Just start work and see how things go.Haiz. Got a job agency call me say got job to intro to me. She say the pay is higher than what my current company offer me butI told her I found a job liao.
Don't know whether I make the right choice anot
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Originally posted by fireng:
Haiz. Got a job agency call me say got job to intro to me. She say the pay is higher than what my current company offer me butI told her I found a job liao.
Don't know whether I make the right choice anot
you should take up the offer lar lol. which co is that.
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Originally posted by Rooney9:
you should take up the offer lar lol. which co is that.
I think I should have went for the job agency interview and accept the job since its higher pay but I didn't.
I straight away tell the job agency that i found a job liao and I won't go for the interview