UBS is making a fundamental change to bonus payments for 10,000 staff, with variable payments replaced with fixed annual awards.
According to reports, the overhaul will focus on the Swiss bank's corporate centre, which includes human resources, marketing and communication staff.
Those earning between SFr50,000 (£38,000) and SFr100,000 will be impacted by the measure, and will in future receive conditional payments equivalent to around half their monthly salaries.
According to Swiss newspaper Sonntagszeitung, the bank intends to pay certain employees a higher fixed sum to ensure their annual salary does not fall.
A spokesperson for UBS said the move was designed to improve transparency and reduce uncertainty.
'[The new system] will eliminate the downside in cases of weak group performance, while retaining the upside in cases of strong performance,' the spokesperson said.
The bank also said the policy will free up the time managers spend on deciding the size of payment, allowing them to be more hands-on.
'We continue to focus on pay for performance and recognise this through salary increases, promotion decisions and developmental opportunities,' the spokesperson added.
The news comes a few weeks after a grim fourth quarter trading update from UBS, which missed forecasts.
Clients pulled $13 billion (£10 billion) in assets from the bank in the final three months of the year amid market volatility, with withdrawals in its core wealth unit approaching $8 billion.
Reports suggested UBS planned to cull wealth manager bonuses across Europe and Asia by as much as 20% following the update. However, the bank has given no confirmation on this.
The bank said the new bonus structure is not a cost-cutting initiative and would not be applied to other areas of the bank.