Based on the performance, allocate the incentive amount to each employee.
From the total amount, split the amount into Bonus (SB Bonus) and remaining portion will be paid under the heading of Performance incentive.
- Decide whether it is calendar period or financial year. (Note : S.Bonus will always calculated from April to March)
- Calculate the annual ctc
- Derive the rating/Grade for all the employees
- Base on the rating/Grade, category -wise decide the percentage of incentive from annual ctc or annual gross pay
- Calculate the total amount
- Pay under two different headings like incentive & Bonus.
10th May 2011
Bonus is a statutory payment. Also it is considered as defered wages. It is to be paid as per law. Don't club bonus with other payments.
Regarding Incentive payment you may arrive an independant agreement/policy with the employees.
11th May 2011 From India, Bangalore