Absentee on Calculation of Year End Bonus
Dear HR colleagues,
We know that if the employee takes long unpaid leave, we shall pro-rate the bonus according to the number of months he/she works in the year. But what happens if the employee takes a full 60 days of hospitalisation leave followed by 2 to 3 months of unpaid leave for recovery?
Does the absence of the employee affect the bonus calculation in your company? Just to get some feedback on other company’s practices.
I don't see why organisations should pay bonuses for days not worked. I would take 365 (or 366) minus NPL to calcualte pro-rata bonus.
Yes, no pay leave typically impacts bonus computation, especially if it is for quite a substantial period of time. For some companies, if the no pay leave is for a short period like say, less than 1 week, they may choose not to prorate bonus.
Yes in our company bonus will be affected.
Yes, we do deduct on a case-by-case basis. 10 days NPL & above per year will be affected.
If you meant the 13th month AWS, my company implemented pro-rated AWS = Basic Salary / 12 mths x No. of completed months.
If performance bonus, the quantum will not be pro-rated, instead it will be according to the performance grade awarded.