26-07-2021, 01:26 PM
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Quote:
Originally Posted by Unregistered
Frontloaded salary works this way:
Say you are paid $4,500 per month (that’s your base).
But if firms were to pay $4,500 per month, no one would join.
So to entice young associates, they pay $6,000 for instance. But the $1,500 is frontloaded.
Which means when you get your bonus of 2-3 months, it is based on the $4,500 per month. So if you calculated $4,500 x 3 months (bonus) it’s equal to $13,500 which is 2.25 months on $6,000 salary.
In firms that don’t practice front load, it means your bonus of 3-4 months is based on $7,500. That’s the meaning
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Also note that if you resign, some firms stop the front load so during your notice your pay will actually be lower.
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