Where and when bonuses are applied

Sociologists who study the process of labor have long noticed a regularity - the material encouragement of activity, the initiative of employees leads to an increase in the efficiency of the work process and an increase in the profit of the enterprise. The best kind of such encouragement, no doubt, is the system of bonuses to employees.

Prizes are the main incentive payment for any form of work organization. The existence of a bonus system clearly convinces the employee of the existence of a direct relationship between the growth of his activity and his personal interest in work and income.

Bonus payout - the payment of additional amounts in addition to the basic salary as a result of a high evaluation of labor achievements and to further stimulate active labor. There are other forms of cash incentives, for example, remuneration for work on the results of the year. Bonus employees can be paid monthly, quarterly or annually. The premiums are usually set as a percentage of the salary or the wage rate.

If the enterprise has a bonus system (piecework or time-based), then the bonus payment is stipulated by the bonus provision, provided that the specified qualitative and quantitative indicators are met. Under this system, bonuses to employees are regular, bonuses are subject to mandatory payment, and the employee in the absence of violations can demand them by law.

If the premiums have the form of incentive payments and are stipulated by the regulations developed directly at the enterprise, the costs of bonuses can be attributed to the costs of production and sale of products and included in the cost price.

Prizes for high achievements in labor, various allowances (for high qualifications, etc.) can be attributed to the taxpayer's expenses for labor payment in accordance with the tax code.

The bonuses for employees are not regulated by the labor legislation, all provisions are exclusively recommendatory in nature and the bonus provision is developed by each enterprise independently. In this situation, the terms and parameters of the bonus, the terms and the size, the source, as well as the circle of the awarded ones and the scale for calculating bonuses must be indicated.

Usually, four main groups of indicators are singled out, for which employees are rewarded.

1. Quantitative - implementation and overfulfilment of the production plan, increase in the percentage of production, compliance with the terms of repair (or shortening of these terms), the performance of a given volume of a smaller number.

2. Quality - improving the quality of products, reducing the percentage of rejects.

3. Economical use of resources.

4. Rational exploitation of equipment, increasing the coefficient of its use, the introduction of new advanced technologies.

Leaders, specialists, employees of the award, as a rule, are established in connection with the increase in profits. The most important prerequisite is not only the performance of production indicators, but also the absence of violations of labor discipline. The size of the premium is usually calculated within 40% of the rate, although in some provisions bonuses in the amount up to 75% of the rate or salary are provided.

The bonus fund of an enterprise or division is formed based on the results of work for the billing period. Based on the funds planned by the accounting department and taking into account the contribution of specific employees, bonuses are accrued.

Thus, it is necessary to distinguish regularly paid bonuses that make up the variable, or the over-tariff part of the salary, and one-time ones. The latter can, among other things, be paid on the occasion of the solemn date, the results of the competition, the review, etc.