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IDear Workforce-I How Much to Pay in Bonuses

How much different types of managers and employees are getting in their stockings.
March 8, 2000
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Related Topics: Variable Pay, Dear Workforce
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Q

Dear Workforce:

What is a standard percentage that companies tend to allocate to bonuses and how much do employees receive as a percent of base salary?
-- Uzma Siddiqui, HR manager, Pakcom Limited

 

A

Dear Uzma:

The allocation percentage varies greatly depending on industry and employee group. This percentage can be a factor of various performance measures and is generally only reported for top management.

 

 Top Management

Avg. Bonus Pool

As a Percentage of Net Profits after Taxes

12.7%

As a Percentage of Total Revenues

3.8%

As a Percentage of the Total of Base Salaries

21.3%

 

 

Percentage received a bonus in 1999

Average paid (as a percent of base salary)

Top Management

68%

35.1%

Middle Management

46%

13.4%

Supervisory Management

29%

8.7%

Professional and Scientific Personnel

27%

7.9%

Technical and Skilled Personnel

18%

5.8%

Data reported above is all industries combined.

 SOURCE: Salary.com, Needham, MA, February 10, 2000.

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