TABLE OF CONTENTS
Introduction
Bonus is an additional incentive that companies provide to employees based on various factors like performance, retention & festival, but a few companies provide a bonus as part of an employee's promised CTC like joining bonuses, annual bonuses and performance-linked incentives.
In this case, whenever the salary is being revised, the employee will be promised an amount that includes a fixed annual salary and bonus. This bonus in general will be a percentage of the total amount promised to the employee.
For example: Let’s assume a new employee is joining the company and he was promised a CTC of INR 20,00,000/- and as per the company policy, 90% of CTC is Fixed Salary and 10% of CTC is variable pay (Bonus). Now if you add the CTC as INR 20,00,000 then the system should be able to divide the amount automatically and have the value as
Fixed Salary: INR 18,00,000/- and Bonus: INR 2,00,000/-
With Keka, the bonus can be now smoothly included in the total pay of the employees. The system takes care of the math during pay updates. This makes things easy, keeping things clear and concise.
Adding Bonus individually
The revising salary option can be used to make salary revisions for each employee individually.
Navigate to an employee's profile by searching his name in the Global Search Bar(1).
In the employee's profile click on Finances (2) and then navigate to Pay (3). Click on Revise Salary (4) to give a new salary structure to the existing employee along with a Bonus.
While providing a revised salary for an employee, select the option of Bonus amount is included in the new salary(5), to include the bonus as a part of the new salary revision.
Click on Add Bonus(6) to add a bonus, select an existing bonus name from the existing components or, create a new bonus component using the Create Bonus Component option. The bonus amount can be given in the form of a Fixed Value or Percentage of Salary. Provide a due date to give the bonus, also you can add a note if required.
After adding bonus click, if you wish to view the detailed breakup structure, click on the Toggle Bar.
Click on Revise to save your changes.
Adding Bonuses while Bulk Importing Salaries
Using the bulk importing salaries option, organizations can import revised salary details of multiple employees with ease.
Click on Payroll(1) and navigate to Payroll Admin(2). Under the Operations tab you can find an Import Salaries with Effective Date(3) hyperlink under the Payroll Imports section, click on it to download an Excel template for uploading the data of revised salaries.
Select a Paygroup(4) from the drop-down, and click on the Excel Template(5) hyperlink to download a template.
In the Download Excel Template screen, you will find the following options:
Adding salary imports: If you want to input a fixed salary amount, select the "As a fixed amount" option. If you prefer to express the salary as a percentage change from the previous amount, choose the "As a percentage change of the previous salary" option.
Check the option of Bonus amount is included & part of the new salary added in this import, to add bonus as a part of salary. From the drop down you can choose the option of providing a bonus as a percentage of salary or a fixed amount.
After providing the necessary details, click on Download(6) to generate a template.
In the New Salary Amount column, input the updated salary, inclusive of the bonus amount. In the Bonus Amount column, specify either a fixed amount or the percentage of the total amount designated for the bonus payout. Set a due date for the bonus payout.
After providing the necessary data, upload the Excel file to reflect the data on Keka.
Click on the link to understand more about uploading data on Keka using Excel File: Importing Employee data using Excel files on the Keka HR portal.
We hope you now have a good idea of how to add bonus as part of the annual salary of an employee on Keka. Have more questions? Contact our Product Experts right away!