Bonus Calculation Criteria HR
BONUS CALCULATION CRITERIA
[Evaluation Period]
Purpose: To provide clarity on the criteria and metrics used to determine employee bonus allocations. This structure ensures transparency, fairness, and consistency in the bonus distribution process.
Performance Rating: 40%
Based on the annual performance review scores.
|
Performance Score |
Percentage of Bonus |
|
Above Expectation |
40% |
|
Meets Expectation |
30% |
|
Below Expectation |
10% |
|
Unsatisfactory |
0% |
Company Financial Performance: 30%
Based on the company's overall financial health and yearly targets.
|
Company Financial Performance |
Percentage of Bonus |
|
Exceeded Targets |
30% |
|
Met Targets |
20% |
|
Below Targets |
10% |
|
Significant Miss |
0% |
Team/Department Contribution: 20%
Measured by the impact and results achieved by the team/department.
|
Team's Performance to Goals |
Percentage of Bonus |
|
Exceeded Targets |
20% |
|
Met Targets |
15% |
|
Below Targets |
5% |
|
Significant Miss |
0% |
Individual Special Contributions: 10%
Recognizing exceptional individual contributions beyond regular duties (e.g., special projects, innovation, process improvements).
|
Individual Contribution |
Percentage of Bonus |
|
Exceptional |
10% |
|
Above Average |
7% |
|
Average |
5% |
|
Below Average |
0% |
Bonus Caps and Minimums
-
Maximum Bonus: 20% of annual salary
-
Minimum Bonus: 2% of annual salary for employees meeting the basic criteria
Disclaimers
-
The bonus is discretionary and may be adjusted based on economic conditions, unexpected events, or changes in company strategy.
-
All bonuses are subject to taxation and other statutory deductions as per local regulations.
-
In case of disputes, the HR department's decision, in consultation with the concerned department head, will be considered final.
