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
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.
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