Promotions and bonuses are always a welcome note for the employees. It is the answer to their sheer hard work that has been put in the work procedures to add growth blocks to the company. The information of bonuses or incentives calculated for the employees is communicated to them through official company bonus letter that has the detailed information about reasons for incentive or bonuses and the amount. Certainly, giving bonus to the company from time to time will keep the employees motivated for enhanced performance in every sector. It is not about giving money to the employees; rather, the purpose of bonuses is to appreciate the work done by the employees and adding to the overall progress of the company. Under mentioned is the performance incentive letter format, which will allow you to draft a valuable message to employees.
Head of Marketing and Finance Department,
Creative Info Solutions Pvt Ltd
Sector 63, Noida, Uttar Pradesh
Dated: November 30th, 2017
Subject: Informing about the incentives for team members
We would like to inform you that the Marketing as well as Finance departments of our company have performed exceedingly well in the last quarter of their work. Apart from completing targets well on time, all of the team members have exceeded the targets too. Of course, the credit goes to effectual team management skills of the Head of the Departments and sheer hard work of employees. It is their willingness to excel on the work front that has made it essential for the company to reward them with valuable incentives. The calculated incentives are on the flat 20 percent of the total monthly salary. The incentives decided for each team member of these two departments is as per Bonus or Incentive Plan Payment Letter template are:
Karan: Rs. 4000 (20000 PM)
Sheetal: Rs. 3200 (16000 PM)
Rajesh: Rs. 3200 (16000 PM)
Manisha: Rs. 3000 (15000 PM)
Neha: Rs. 6000 (30000 PM)
Mehar: Rs. 5000 (25000 PM)
Mehul: Rs. 5000 (25000 PM)
In the end, I would like to congratulate all of them on behalf of the company authorities for excelling in their performance. We wish that they keep up with the progressive nature at work front and strive to excel always.
Thanks and Regards,
Senior HR Manager
The new limit will be Rs. 15,000 basic as compared to the old 10,000 INR. The lower limit will be increased from 8.33 to 11%.
Bonus has to be paid at the rate of 8.33% of Basic as minimum and 20% of Basic as maximum. All those employees who are getting the Basic salary of upto Rs 10,000 per month are entitled to get Bonus. For the purpose of the calculation Bonus has to be paid on the maximum Basic of Rs 3500/-. e.g., if any employee is getting Basic salary in between Rs 3500 and 10,000 per month, he has to be paid the Bonus at the rate of 8.33% of Rs 3500/- as minimum or 20% of Rs 3500/- as maximum. But If he is getting basic salary less than Rs 3500/- he has to be paid Bonus on actual Basic.
Company Manager may also be eligible to receive bonus if he is covered under the definition of the employee as shown in section 2(13) of The Payment of Bonus Act, 1965.
As per The Payment of Bonus Act minimum Bonus will be 8.33% min level up-to Rs. 3500/- & max level to Rs. 8400/- @20%.
Minimum 30 days is eligible for Employees for getting Bonus Amount.
I am attaching bonus calculator which has formula in the excel sheet. All that you need to do is to put the month-wise attendance and the actual salary details.
Please find attached herewith all the formats as provided under the Payment of Bonus Rules.
Each of our employees who has been with our firm for a period of six months or more receives a Christmas bonus. Since you became a member of our sales department on August 1st, you will not be receiving a bonus this year.
I wanted to be sure that you understood this company policy prior to our disbursement of the holiday paychecks to avoid any misunderstanding or disappointment on your part.
We are very pleased with your work and while we would like to bend the rules, this would be unfair to all of our other personnel.
Attach herewith Form D (Bonus return).