TRADITIONAL 13TH CHEQUE ON ITS WAY OUT

TRADITIONAL 13TH CHEQUE ON ITS WAY OUT

More than 66% of lower-level staff are still receiving 13th cheques, while only about 40% of senior management receive a bonus not related to performance. 

At middle management level, less than 60% were getting an extra cheque regardless of their performance. 

In 1994, 85%-90% of staff, no matter their level of seniority, received 13th cheques. 

“Organisations are reducing their commitment to the traditional bonus because these bonuses are effectively no more than deferred payments. In addition, they inflate salary and wage costs and are by definition not self-funding as a result of productivity or other performance improvements.” 

“In the case of more senior employees, in particular, the standard bonus is being replaced in many cases by enhanced opportunities to earn performance-based pay.” 

Meanwhile, the occurrence of performance-based bonuses has doubled since 1992, with about 70% of companies paying such bonuses of one sort or another. 

The change in remuneration policy was driven by competition and a desire to link pay more to individual and organisational performance. 

Reference: 

Payroll World