How Can We Fairly Split Employee Turnover Rewards into Bonuses and Incentives?

Dear all, we want to give a specific amount to employees based on turnover. However, we want to divide it into incentives and bonuses. How can I apply this? Please reply.

Hi, based on the performance, allocate the incentive amount to each employee. From the total amount, split the amount into Bonus (SB Bonus) and the remaining portion will be paid under the heading of Performance incentive.

Guidelines:

- Decide whether it is the calendar period or the financial year. (Note: S.Bonus will always be calculated from April to March)
- Calculate the annual CTC.
- Derive the rating/grade for all the employees.
- Based 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.

Thanks & Regards,
D Jayashri

Bonus is a statutory payment. Also, it is considered as deferred wages. It is to be paid as per law. Don't club bonus with other payments.

Incentive Payment

Regarding incentive payment, you may arrive at an independent agreement or policy with the employees.

Regards,
Abbas.P.S