Holiday Bonus
neryka
1 Post
Hello all,
I am from NY; I would like to know what is the best way to calculate a Christmas bonus to the employee? 5 to 10 % will be a good term? I understand that there is no law which mentions the minimum amount of bonus, however I will like to have some recommendations and which will be the best way to do it.
Thanks ! [Y]
Comments
There is no standard way, but a lot of companies either give a set amount (such as $500) OR a certain percent of pay. It depends on whether you want every employee to get the same amount or whether you want it to match back to some other factor, such as their salary. In the past, we get a set amount based on level of employee (usually $50, $100 or $200).
5-10% in this economy seems rather large to me for a Christmas bonus. Is this bonus at all tied to employee or employer profitability? If so, 5-10% seems more reasonable if the company is doing well. Many employers however have a Profit Sharing part of their 401k where they put that type of money/bonus.
In the past we have given a set amount to every employee. The only exception is if someone had not been with the company for the entire year. In that case we would prorate the amount for the time he/she had been with the company.
I agree with ohers that in this economy 5-10% of salary seems like a lot of money.