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Performance bonuses
- Thread starter Mike Hoxbig
- Start date
In the company I work for we can get max 18% of our annual total guaranteed package(TGP) as an incentive bonus. At the beggining of the finacial year we are given a lot of targets such as certian R&D projects, BEE compliance, safety etc. This year we achieved 73.5% of our target which means that we get 13.23% of annual TGP. This is over and above our normal annual leave bonus. This gets paid out with our September pay. This month is September, so it means that currently I am smiling cheek to cheek!
Mila
Honorary Master
New Question
If your salary package states that you are paid R100 000 a year plus 4 times a year you will receive a R 20 000 bonus.
They include this in your total package.
But then they tell you that the R 20 000 is performance based and if you do 120% of your work, you can only earn 80% of that and the other 20% is the company performance.
Are they allowed to include the R20 000 x 4 in your package if you will never all of it?
Are they allowed to score you a 120% on your performance but tell you the company did -200% and you will now not receive any kind of bonus?
Is there not a law that states that they are not allowed to tell you you will earn X but pay you Y.
If your salary package states that you are paid R100 000 a year plus 4 times a year you will receive a R 20 000 bonus.
They include this in your total package.
But then they tell you that the R 20 000 is performance based and if you do 120% of your work, you can only earn 80% of that and the other 20% is the company performance.
Are they allowed to include the R20 000 x 4 in your package if you will never all of it?
Are they allowed to score you a 120% on your performance but tell you the company did -200% and you will now not receive any kind of bonus?
Is there not a law that states that they are not allowed to tell you you will earn X but pay you Y.
Mike Hoxbig
Honorary Master
That's where it starts getting a bit icky, it's one of the reasons that I don't agree with things like CTC packages.
I'm not a lawyer, but from what I understand they appear to be saying that if you complete 120% of your work, then you will receive 80% of the bonus. The other 20% is based on the company performance, so if the company does not perform then you won't receive this 20%.
If it is that, then I don't think that they'd be breaking any rules as long as they clearly define what you will and will not be paid, and the factors that influence that.
Mila
Honorary Master
Pisses me off.
thanx.
Albereth
Honorary Master
Rather link it to CTC. You may find that they'll use retirement funding income as your gross - you'll need to look at your payslip to see where the Gross figure appears in the calculation.
Albereth
Honorary Master
They need to be quite clear about what you earn.
The bonus scheme is over and above your salary. It does not feature in your salary, CTC, or any of that. But they should be quite celar on the scheme and how it works. You will pay medical aid, pension, UIF, PAYE etc on your salary. Not on your bonus. Your leave value will be based on your salary, not your bonus and not including your bonus.
If part of your bonus depends on personal performance then you should be due the bonus irrespective of how the company performed. Have a look for some sort of discretionary disclaimer.
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Mike Hoxbig
Honorary Master
Nah I'm not a big fan of CTC. My contract states that my monthly gross will be Rxxxxx.xx payable monthly in arrears. My nett is simply gross minus PAYE and UIF. The company contributes R500 towards my medical aid, which isn't deducted from my salary. I contribute towards my own pension fund.
So basically if my monthly gross is R25 000, that's R300 000 per annum, and the performance bonus would be R60 000.
Mila
Honorary Master
Thanx.