How To Calculate Your Annual Premium

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How To Calculate Your Annual Premium
How To Calculate Your Annual Premium

Video: How To Calculate Your Annual Premium

Video: How To Calculate Your Annual Premium
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In order to motivate staff, the organization usually makes material incentives in the form of bonuses, which can be monthly, quarterly or annually. The award, which is paid once a year, is called the thirteenth award and is awarded to those employees who have worked a full calendar year at the enterprise.

How to calculate your annual premium
How to calculate your annual premium

It is necessary

internal position approved by the manager and employee data

Instructions

Step 1

The management of many companies has successfully paid the annual bonus for years and actively introduced other incentives, which has a positive impact on the company's operations.

Step 2

The bonus system is developed directly at the enterprise and includes bonus periods, bonus indicators, the amount and grounds of the bonus, as well as a list of persons. The amount of the bonus can be calculated based on the employee's annual salary rate or on the length of service and salary. By paying remuneration, the employer shows his employees that the contribution of each employee to the activities of the organization is important to him and thereby reduces staff turnover.

Step 3

After the development of the internal regulation, which should include the bonus system, it must be agreed with representatives of the body of the employees of the enterprise, if any, and only then submitted for approval to the head. To calculate the bonus, you need to know what bonus system operates in the given enterprise.

Step 4

For example, an employee of an enterprise has worked for 1 year, his monthly salary is 5 thousand rubles, the annual income comes out in the amount of 60 thousand rubles. That is, you need to multiply the salary by 12 months. The annual bonus is calculated as a percentage, it can be 5% or 10%, depending on the rules established by the management. If the bonus is 10% of the annual salary, then 60 thousand must be divided by 100 and multiplied by 10. The amount of the bonus for this employee will be 6 thousand rubles.

Step 5

The bonus can be calculated based on the length of service and salary. For example, an employee has worked for 3 years. Material remuneration for the internal situation of the enterprise for an employee who has worked for 3 years is 2 salaries. In this case, the annual bonus will be twice the amount of income for 1 worked month.

Step 6

The basis for the payment of the bonus is the order of the head of the enterprise, it can be issued for each employee separately, or for several employees at once. The order must indicate: the amount of the bonus, the reason for payment, the basis and personal data, including the full name, position, personnel number and structural unit.

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