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Calculation of Pro-rated bonus needs to be amended

The calculation of Pro-rated bonus in Justlogin is not correct. I do not think there is a company that would actually pay bonus based on that calcaultion alone.

Suppose we intend to pay 2 months' bonus to each employee but this amount is to be pro-rated for employees who were not with the company for the entire 12 months of the year.

There should be two parts to the calculation:

  1. Which salary/pay to use: average or latest pay

  2. Whether pro-ration is done for bonus using number of days or number of months the employee has worked in the year

The calculation currently done by the system deals with (1) by calculating average salary for the year. But it does not then apply (2) because if my employee only joined in July, her bonus should be pro-rated and not simply equivalent to 2 months of her average salary of the year.

  • Guest
  • Feb 3 2022
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