How is the performance bonus calculated and what is the performance bonus

The calculation method of performance bonus varies depending on the company's situation and the choice of performance appraisal tools. Usually, performance bonuses are determined by a combination of the employee's individual performance and the company's overall performance. Some common ways to distribute performance bonuses include:

Individual performance bonuses, team performance bonuses, and company performance bonuses [4].

Individual performance bonuses are distributed to individuals based on the performance of individual employees. This method is suitable for employees who are able to complete tasks independently, and their individual performance has a greater impact on the company's performance, such as salespeople, project managers, etc.

Team performance bonuses are distributed to the entire team and are suitable for employees who work together to complete tasks within the team.

The company performance bonus is to distribute the bonus to the whole company, which is suitable for the situation that the overall performance of the company is good.

In China, performance bonuses are usually paid on a monthly basis, and the specific amount is determined based on the performance of the individual employee and the overall performance of the company. Some companies also include performance bonuses as part of their year-end bonuses.

It is worth noting that, according to the relevant laws and regulations of China, performance bonuses are a way for employers to reward employees and should be voluntary.

Legal analysis: performance bonus, also known as one-time bonus, the essence of performance pay is "post value deposit". It is a one-time reward given according to the performance appraisal results of the employee, that is, the company will split the salary level of the corresponding position of the employee into two parts, one part is fixed, and the other part is adjusted according to the performance.

Legal basis: Article 50 of the Labor Law of the People's Republic of China Wages shall be paid to the worker in the form of money on a monthly basis. Wages shall not be deducted or unjustifiably delayed.

Legal analysis: At present, there are no specific provisions in laws and regulations that require employers to issue year-end bonuses, and generally speaking, the calculation of year-end bonuses should be based on the labor contract or the rules and regulations of the employer.

Basis for dismantling the legal booklet: Article 8 of the Law of the People's Republic of China on Labor Contracts Article 8 When an employer recruits a worker, it shall truthfully inform the worker of the work content, working conditions, work location, occupational hazards, safety production status, labor remuneration, and other information required by the worker; The employer has the right to know the basic information directly related to the employee's contract with the labor force, and the employee shall truthfully explain it.

Legal analysis: At present, there are no specific provisions in laws and regulations that require employers to issue year-end bonuses, and generally speaking, the calculation of year-end bonuses should be based on the labor contract or the rules and regulations of the employer's hand-judgment. Year-end performance bonus, bonus base, department coefficient, post coefficient, working time adjustment coefficient, individual annual appraisal coefficient.

1.Performance Bonus Base:

The individual's monthly standard salary (including tax) is used as the base for the performance bonus for the current year.

2.Sector coefficient: Qiaosun.

The sector coefficient is determined based on the contribution of each department to the company, and this factor is readjusted annually.

Legal basis: Labor Contract Law of the People's Republic of China Article 8 When an employer recruits a worker, it shall truthfully inform the worker of the work content, working conditions, work location, occupational hazards, safety production status, labor remuneration, and other information required by the worker.

According to the provisions of the relevant laws of China, the performance bonus is the employer's reward for the employee, and it is a reward for the employee's work behavior or the performance results he has achieved. Different performance bonuses are calculated differently. Monthly Performance Bonus Calculation Method:

Individual performance bonus = basic salary of the month * 10% * department coefficient * individual assessment level coefficient. Calculation method of annual performance bonus: year-end bonus = (coefficient * number of consecutive months of work * basic salary) 12 * score percentage.

Legal basis: Article 18 of the Labor Contract Law of the People's Republic of China stipulates that if the labor contract is not clear on the standards of labor remuneration and working conditions, and disputes arise, the employer and the employee may renegotiate; If the negotiation fails, the provisions of the collective contract shall apply; If there is no collective contract or the collective contract does not stipulate labor remuneration, equal pay for equal work shall be implemented; If there is no collective contract or the collective nuclear fiber contract does not stipulate standards such as working conditions, the relevant provisions of the state shall apply.

Article 28 of the Labor Contract Law of the People's Republic of China stipulates that if a labor contract is confirmed to be invalid and the employee has already paid for the labor, the employer shall pay the labor remuneration to the employee. The amount of labor remuneration shall be determined with reference to the labor remuneration of workers in the same or similar positions in the same unit.

The most important concern of employees is income, and they will have a certain understanding of income distribution, which will often encounter the distribution of work on the company's performance. The company first allocates the performance pay to the department, and then the department allocates it to the employees. So how is the performance bonus calculated?

1. How to calculate the performance bonus

1. Calculation method of monthly performance bonus:

10% of the basic salary of the individual is withdrawn from the basic salary of the individual every month as the benchmark amount of the individual bonus, and the bonus amount is calculated according to the actual results;

Calculation method: individual performance bonus = basic salary * 10% * department coefficient * individual assessment grade coefficient.

2. The method of calculating the annual performance bonus:

The calculation formula is: year-end bonus = (coefficient * number of consecutive months of work * basic salary) 12 * score percentage.

The coefficient is determined by the company's management committee on the basis of the annual profit report).

3. For those who have served in the company for less than 1 year, their year-end bonus assessment will be calculated and issued based on the number of consecutive working months.

2. How to list the calculation formula of the assessment items

1. Calculation method and application of inverted type.

2. Statistical calculation methods and their applications.

3. Proportional calculation method and its application.

4. Empirical calculation formula.

3. How to calculate the personal performance score

In order to make employees' work performance comparable to each other and effectively implement rewards and punishments, the performance score calculation method is usually used to evaluate the completion of employees' individual work performance.

The formula for calculating the individual performance score is as follows:

Individual Performance Score = (KPII Performance Score KPII Weight) Total KPI Weight + (Work Objective Completion Score Weight) Total Work Objective Weight.

The above is for you to collect and sort out aboutHow to calculate the performance bonusThe total amount of performance pay is completely controllable, and the performance salary of employees with poor performance can be automatically transferred directly to employees with good performance, and the performance salary of employees cannot be clearly predicted.

According to the relevant laws of China, the performance bonus is the employer's reward method for employees, and it is a reward for employees' work behavior or performance results, and its reward method is to increase part of the salary on the basic salary, and each salary increase is an increase on the basis of the basic salary that has been increased. Different performance bonuses are calculated differently. Monthly Performance Bonus Calculation Method:

Individual performance bonus = basic salary of the month * 10% * department coefficient * individual assessment level coefficient. Calculation method of annual performance bonus: year-end bonus = (coefficient * number of consecutive months of work * basic salary) 12 * score percentage.

Article 18 of the Labor Contract Law of the People's Republic of China stipulates that if the labor contract is not clear about the standards of labor remuneration and working conditions, and disputes arise, the employer and the employee may renegotiate; If the negotiation fails, the provisions of the collective contract shall apply; If there is no collective contract or the collective contract does not stipulate labor remuneration, equal pay for equal work shall be implemented; Where there is no collective contract or the collective contract does not stipulate standards such as working conditions, the relevant provisions of the state shall apply. Article 28 of the Labor Contract Law of the People's Republic of China stipulates that if a labor contract is confirmed to be invalid and the employee has already paid for the work, the employer shall pay the employee a remuneration for the labor report. The amount of labor remuneration shall be determined with reference to the labor remuneration of workers in the same or similar positions included in this bill.