The method of calculating the necessary annual bonus, equal to at least one month’s wage, entails figuring out an worker’s complete fundamental wage earned inside a calendar 12 months and dividing it by twelve. For instance, an worker with a complete fundamental wage of $36,000 over a 12 months would obtain a bonus of $3,000.
This mandated profit offers a monetary increase to staff, significantly through the vacation season. Its historic context stems from labor legal guidelines designed to enhance employee welfare and supply a extra equitable distribution of firm earnings. It serves as a useful complement to common earnings, aiding with bills and inspiring worker morale and productiveness.
