BONUS

Im quite confused over the issue on bonus.

Your bonus is base on your last drawn salary?
Or base on your average salary throughout the year?

E.g.
let say your salary increase twice or thrice 10% over the same year.
So which amount should the company use?
Any correct calculations for the bonus?

From my understanding for 1time increment usually is using the after increment salary. But if twice or thrice & the increment is 10% or even more? The amount is quite alot...

artease5 wrote:

Im quite confused over the issue on bonus.

Your bonus is base on your last drawn salary?
Or base on your average salary throughout the year?

E.g.
let say your salary increase twice or thrice 10% over the same year.
So which amount should the company use?
Any correct calculations for the bonus?

From my understanding for 1time increment usually is using the after increment salary. But if twice or thrice & the increment is 10% or even more? The amount is quite alot...

Depends on the industry you are in and your employment contract
Most bonuses are awarded at the discretion of the employers - which are pegged to the company's performance which in turn pegged to your individual contribution to the success of your employer(if you can quantify that, its best). Else, the amount of bonuses always varies. and open for inconclusive arguments/disputes. Do note that bonuses are not an entitlement.

That said, most industries award bonuses( number of months) based on the last drawn salary. And it can come in cash, stock options...etc.

Fruit Seller wrote:

artease5 wrote:

Im quite confused over the issue on bonus.

Your bonus is base on your last drawn salary?
Or base on your average salary throughout the year?

E.g.
let say your salary increase twice or thrice 10% over the same year.
So which amount should the company use?
Any correct calculations for the bonus?

From my understanding for 1time increment usually is using the after increment salary. But if twice or thrice & the increment is 10% or even more? The amount is quite alot...

Depends on the industry you are in and your employment contract
Most bonuses are awarded at the discretion of the employers - which are pegged to the company's performance which in turn pegged to your individual contribution to the success of your employer(if you can quantify that, its best). Else, the amount of bonuses always varies. and open for inconclusive arguments/disputes. Do note that bonuses are not an entitlement.

That said, most industries award bonuses( number of months) based on the last drawn salary. And it can come in cash, stock options...etc.

I understand everything u mentioned.
but think again ... That said, most industries award bonuses( number of months) based on the last drawn salary. And it can come in cash, stock options...etc.[/quote]

but if its one time increment its fine but over a year with twice or thrice. the amount of bonus is harder to calculate & i never experience something like this. so what can be a justifying calculation/formula. thats more of what im seeking for.

A couple of questions - sounds like you are civil servant where they award bonuses twice or thrice a year. As for civil service, i am not sure of the formula they use. Maybe based on their mid year performance and year end performances, they award based o a percentage of the achievenvement.

What is your appointment? Can you quantify the success of your contribution in terms of $$ gains of your company, eg,. size of deals, improve gross margins, save cost....etc.

If you can, and depending on the industry you are in, you can use the percentage of the contribution(in $$ terms) that you had made for the company. And the end figure is typically translated into the number of months of you last drawn pay. There again, some company might put a cap on the bonuses, limiting to a number of months and you can;t get anymore even though you over achieve.

Another calculation is based on your over achievement. If you over achieve your objective by 120% - you can get 2 months of boinuses......140% 4 months.....etc.

Forgot to add regarding last drawn salary. Most MNCs that I know of - award bunuses based on last drawn salary - no matter how many times nor how much your salary had been increased over the same year.

Maybe only the local firms that are stingy would award a percentage of the increment itself(pro rate method). Eg, if your salary is incresed by $100, the bonus maybe a % of this $100.

artease5 wrote:

Im quite confused over the issue on bonus.

Your bonus is base on your last drawn salary?
Or base on your average salary throughout the year?

E.g.
let say your salary increase twice or thrice 10% over the same year.
So which amount should the company use?
Any correct calculations for the bonus?

From my understanding for 1time increment usually is using the after increment salary. But if twice or thrice & the increment is 10% or even more? The amount is quite alot...

Bonuses are usually computed based on your last drawn salary.

If your salary is $1000 and you receive a bonus of 2 months, you'll receive $2000. If your incremental month is July and bonus is paid in June, regardless of eligibility period, your bonus would be computed based on the current salary. If it is paid in July, it will be computed based on the latest salary after the salary is revised.

But this is generally how the bonus is computed. Your company may still have its own method of computing.

Fruit Seller wrote:

Forgot to add regarding last drawn salary. Most MNCs that I know of - award bunuses based on last drawn salary - no matter how many times nor how much your salary had been increased over the same year.

Maybe only the local firms that are stingy would award a percentage of the increment itself(pro rate method). Eg, if your salary is incresed by $100, the bonus maybe a % of this $100.

lol..no lar, highly unlikely. if there's a company that does that, give 24 hr notice n burn it to the ground.

The employers usually give a number of months bonus, a range n all this may be based on a fixed rate for each level or company wide or it may be based on performance of the staff.

It may be a percentage of your annual salary or a number of months x monthly salary..blah blah blah but definitely not based on the increment amount itself.

Your explanations sound more logical.
Think u should be the one with most working experiences in this forum.

funniegal wrote:

artease5 wrote:

Im quite confused over the issue on bonus.

Your bonus is base on your last drawn salary?
Or base on your average salary throughout the year?

E.g.
let say your salary increase twice or thrice 10% over the same year.
So which amount should the company use?
Any correct calculations for the bonus?

From my understanding for 1time increment usually is using the after increment salary. But if twice or thrice & the increment is 10% or even more? The amount is quite alot...

Bonuses are usually computed based on your last drawn salary.

If your salary is $1000 and you receive a bonus of 2 months, you'll receive $2000. If your incremental month is July and bonus is paid in June, regardless of eligibility period, your bonus would be computed based on the current salary. If it is paid in July, it will be computed based on the latest salary after the salary is revised.

But this is generally how the bonus is computed. Your company may still have its own method of computing.

No la. not a civil servant. Non am i getting this bonus.
Because a friend whose in a local firm asked me about it.
So i just post here for discussion

Fruit Seller wrote:

A couple of questions - sounds like you are civil servant where they award bonuses twice or thrice a year. As for civil service, i am not sure of the formula they use. Maybe based on their mid year performance and year end performances, they award based o a percentage of the achievenvement.

What is your appointment? Can you quantify the success of your contribution in terms of $$ gains of your company, eg,. size of deals, improve gross margins, save cost....etc.

If you can, and depending on the industry you are in, you can use the percentage of the contribution(in $$ terms) that you had made for the company. And the end figure is typically translated into the number of months of you last drawn pay. There again, some company might put a cap on the bonuses, limiting to a number of months and you can;t get anymore even though you over achieve.

Another calculation is based on your over achievement. If you over achieve your objective by 120% - you can get 2 months of boinuses......140% 4 months.....etc.