Pro-rated Bonuses

We did not give a salary increase this past year due to financial issues, but since things have improved, we have decided to maybe give out a type of "bonus" at the end of the year and then start over at the first of the year with performance reviews, etc.

Have any of you managed such a situation. How do you give this bonus out to people who have only been with the organization 2 months. Do you just come up with what the annual bonus would be and prorate it for two months, or what?

Any advice would be appreciated.


  • 2 Comments sorted by Votes Date Added
  • Yes, I would prorate it.

    In order to avoid this type of situation, we give out a bonus only after a full year of service. However, this sometimes results in someone who starts employment in February having to wait 1 yr 11 months for a bonus. So, you may want to put a qualifier on your bonus that states you must have worked in the 6 months prior to the bonus in order for it to be awarded. Then, prorate the bonus for those who qualify.
  • Our program states that you must be employed between Jan 1 and May 31 in order to be eligible to pariticpate in the program for that year. We also pro-rate what the amount would be based upon the "full" months worked during the year. For example if you worked 9 full months, the ee would get 9/12 of the amount. Anyone hired June 1 or later must wait until the next year to be eligible to participate.
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