Merit Bonus Pay Clause Samples
Merit Bonus Pay. The parties understand that CalPERS has determined that the Merit Bonus Pay described in this provision is not CalPERS reportable income for classic members. The Port will not report Merit Bonus Pay unless CalPERS changes this determination. Regular full-time employees are eligible to earn Merit Bonus Pay based on the superior performance of the employee. The amount of Merit Bonus Pay that an employee is eligible to earn is based upon management’s assessment of the employee’s achievement of expected results in identified performance goals and objectives and their overall performance. Full-time employees who meet the merit bonus eligibility criteria listed below, may be eligible for Merit Bonus Pay every year. Employees are not eligible for Merit Bonus Pay based on their probationary evaluations. To be eligible for Merit Bonus Pay, an employee must have served an entire (post-probationary) year at their current step in time to receive their evaluation in either June or December.
1) Merit Bonus Pay will be based on a superior job performance (performance rating of Outstanding or Exceeds Expectations).
2) When an employee who meets the eligibility criteria for Merit Bonus Pay receives an increase in salary resulting from a salary range adjustment (Step Increase), the Merit Bonus Pay shall be determined by the difference between the awarded bonus amount and the salary step increase. OVERALL PERFORMANCE RATING MERIT BONUS OUTSTANDING 1.5-% - 8% (Eligible) EXCEEDS EXPECTATIONS 4% (Eligible) MEETS EXPECTATIONS 0% (Not Eligible) NEEDS IMPROVEMENT 0% (Not Eligible) UNSATISFACTORY 0% (Not Eligible)
Merit Bonus Pay. Exceeds Expectations When a regular full-time employee receives an annual performance evaluation of “Exceeds Expectations”, the regular full-time employee shall receive a Merit Bonus Pay equivalent to the following: Effective the first day of the pay period containing July 1 of each year, or the pay period containing January 1 of each year, whichever is applicable, all represented employees under the terms of this Program shall a receive Merit Bonus Pay in the amount equal to the percentage difference between four percent (4%) and the amount of their step increase. Step increases in the wage scale progression to the next step are normally in excess of 4%, eliminating the Merit Bonus Pay for any employee who receives a Step increase in that year. Represented employees who have been paid at Step E under the terms of this Program for at least one (1) full year would normally qualify for Merit Bonus Pay of four percent (4%) of their annual base salary upon receipt of an annual performance evaluation of “Exceeds Expectations”. This Merit Bonus Pay will not be an adjustment of base salary and will be made in twenty-six (26) biweekly installments.
Merit Bonus Pay. Outstanding Performance When a regular full-time employee receives an overall annual performance evaluation of “Outstanding”, the regular full-time employee shall receive a Merit Bonus Pay equivalent to the following: Effective the first day of the pay period containing July 1 of each year, or the pay period containing January 1 of each year, whichever is applicable, all represented employees under the terms of this Program shall receive Merit Bonus Pay in the amount equal to the difference between the awarded bonus amount and the amount of their step increase. However, the Merit Bonus Pay for employees at Step B through Step E who also receive a step increase shall not exceed one and one- half percent (1.5%) of their annual base salary (after deducting the Step Increase). Represented employees who have been paid at Step E under the terms of this Program for at least one (1) full year shall receive Merit Bonus Pay in the amount of eight percent (8%) of their annual base salary upon receipt of an annual performance evaluation of “Outstanding” . Merit Bonus Pay will not be an adjustment of base salary and will be made in twenty-six (26) biweekly installments.
Example 1. Employee B is at salary Step C. She is awarded Merit Bonus Pay of eight percent (8%). She also receives a salary step increase of five percent (5%). The difference between her salary step increase and merit pay bonus is three percent (3%). Merit Pay Bonus shall not exceed one and one-half percent (1.5%) of her annual base salary. Therefore, Employee B will receive her full salary step increase of five percent (5%) plus a Merit Bonus Pay of one and one-half percent (1.5%) for a total of six and one-half percent (6.5%).