This article explains how clients can add special compensation to reward EOR employees.

In this article:

What is variable compensation?
How to add a variable compensation to a contract

What is variable compensation?

Variable compensation allows you to specify performance-related additional amounts that you can give to your employees. It is a financial incentive to reward hard work, and a job well done.

Clients can amend a contract at any time to add variable compensation, and then clients will make invoice adjustments to award the money.

The employee may be entitled to a Variable compensation at the sole discretion of the employer.

How to add a Variable compensation to an EOR contract:

✅ Step 1 – Click on the Contracts tab (1) and select a full-time employee (2) 

✅ Step 2 – Select the (1) Contract Details tab and click (2) 

Request Amendment

✅ Step 3 – Click Amend in the Compensation Details box

✅ Step 4 – Select the Add annual variable compensation toggle button

✅ Step 5 – Enter the Amount or Percentage of annual variable compensation

Rewarding EOR employees with a yearly variable compensation is a decision left to the sole discretion of employers, and employers may choose any amount or percentage up to the maximum value listed. Then click Update

✅ Step 6 – Click Send Amendment Request 

Amending the contract to include a variable compensation does not automatically award the employee extra compensation. 

If you wish to award an EOR Employee the variable compensation, you must manually add a variable compensation to the invoice. Refer here for more information.

Note: Employees may be entitled to some, or all, of the variable compensation at the sole discretion of the employer