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Do These Things to Calculate Bonuses for Employees

Do These Things to Calculate Bonuses for Employees

In every company, employee welfare should be an important point. Employee satisfaction in working in the company becomes an important thing that must be considered by the top management because it involves loyalty and employee performance within the company. This is certainly related to payroll and incentive sharing or additional bonuses. Award given by the company in the form of bonuses or incentives is eagerly awaited by the employees.

 

According to the Circular Letter of Labour Minister No. SE-07/MEN/1990, “Bonus is paid in addition to salary or wages that is received from the profits gained by the company or received due employees’ hard work to achieve the target or employees’ increased productivity; the bonus sharing is arranged by an agreement. the amount of bonus sharing is arranged by agreement.”

 

In Indonesia, there are several kinds of bonuses given to employees such as:

 

  • Retention Bonus

Retention Bonus is a bonus given to keep an employee at a company. Employees are usually required to sign an agreement stating they will keep working for a certain period of time or until the completion of a particular task or project in order to fulfil the requirement of getting the bonus.

 

  • Annual Bonus

The Annual Bonus is a variable pay compensation, usually in cash, given to employees if the company’s annual performance exceeds specified financial and non-financial targets. Bonuses are generally expressed as a percentage of salaries and may have a guaranteed minimum and a certain maximum.

  • Year-End Bonus

Year End Bonus is a payment that is sometimes given to employees at the end of the year when employees and / or companies perform very well.

 

  • Tantiem

Tantiem is a part of corporate profits to be awarded to employees, which can only be granted if the company obtains net profit as stipulated in Article 70 paragraph (1) of Law no. 40 Year 2007 regarding Limited Liability Company (UU PT).

 

There are many ways in determining employee bonuses, the calculation depends on the standard used by the company. One way is as follows:

 

  1. Determine the source of employee bonus funds.

You have to determine whether it comes from a budget prepared by the company, the cost difference of BPJS or employee attendance.

 

  1. Determine the deciding factor

Companies have the deciding factors in giving bonus such as the work period, achievement, position, and level of employee attendance. You have to sort all the deciding factors. For instance, an employee who has worked for more than 2 years will get 70% for this bonus, more than 5 years will get 80% for his bonus, and so on. You can also determine it by its position such as 70% for supervisor, 80% for managers, etc.

 

  1. Determine the bonus

The employee bonus can be calculated by the formula = monthly salary x work period x the percentage of job position.

 

  1. Enforce the Disciplinary Sanctions

There is also a sanction factor that can reduce the bonus so that the bonus earned is reduced by the percentage of sanctions obtained by employees.

 

If you are still calculating employee bonus manually, then there could be the possibility to miscalculate .

 

So, it is necessary for you to have an accurate employee bonus calculation program as provided by SunFish Go .SunFish Go provides payroll systems, incentives and bonus calculations that enable you and your employees to access and check their salaries and bonuses.