Difference Between Bonus And Sales Incentives

Hi HR gurus, I want to know the difference between bonus and sales incentives. Can you clarify is a bonus is being declared in a company, can it exclude the sales people as the latter already get sales incentives? Thanks!

Hi dear, Bonus and incentives is two different things. 1. For bonus there is act known as Payment of Bonus Act 1967 but there is no specific act on incentives( if we leave wages act , compensation act etc.) 2. Bonus is in money form only but incentives can be monitory and non non-monitory. 3. Bonus applied to employees whose wage not exceeding 3500 per month this is not so with incentives. 4. Bonus is paid only when company is in profit and calculated mostly on yearly basis but you have to give incentives when you r in loss also. 5. Bonus is given on bases of contribution of all employees but incentives are based on individual contribution. Mostly bonus is for profit based organization (manufacturing unit) and not for other. Mostly salesman is excluded from bonus. (But may depend on company to company) Regards KULDEEP SINGH RATHORE

Hi, Going through explanation , I can only suggest that Sales employees are not exculded from the Payment of Bonus Act . As employees they are equally eligible for their share in terms of other provisions. Regards, Rajpal

To outline the basic difference- Bonus is Statutory in nature i.e we need to pay it to all employees whose salary is less than Rupees 3500. While incentive is non- statutory and generally applicable to White Collar workers.

Bonus ( Merit based calculation ) and Incentive are completely different. In case of Bonus you reward employees differently based on their performance( limits generally defined), wherein incentives are paid on simple logic " you bring more money for me and I will give you more"

Bonus is profit based. Incentive is based on individual's performance against the targets set.

I am working in a organizations who policy is that you are getting insentives more than yours statuary bonus amount so you are not get the bonus. I want to know how this can be right because performance bonus is different and statuary bonus which we received one in a year is different please suggest me what can I do in this type of behavior of company?