Merit Pay Premium Clause Samples
The Merit Pay Premium clause establishes additional compensation for employees based on their performance or achievement of specific goals. Typically, this clause outlines the criteria for earning the premium, such as exceeding sales targets or demonstrating exceptional job performance, and details the calculation or percentage of the premium added to base pay. Its core function is to incentivize high performance and reward employees who contribute above standard expectations, thereby motivating productivity and aligning individual efforts with organizational objectives.
Merit Pay Premium. 1. Regular full-time employee who are paid at Step “c” or “d” under the terms of this Program shall receive premium pay in the amount of one and one half percent (1.5%) of their annual base salary upon receipt of an annual performance evaluation of “Outstanding”. This premium pay will not be an adjustment of base salary and will be made in twelve (12) equal monthly installments.
2. Regular full-time employee who have been paid at Step “e” under the terms of this Program for at least one (1) full year shall receive premium pay in the amount of four percent (4%) of their annual base salary upon receipt of an annual performance evaluation of “Exceeds Expectations” or eight percent (8%) of their annual base salary upon receipt of an annual performance evaluation of “Outstanding”. This premium pay will not be an adjustment of base salary and will be made in twelve (12) equal monthly installments.
3. A represented employee who is promoted or retired before receiving full payment of their premium, shall be paid the balance of that earned Merit Pay premium in one lump sum at the earliest feasible pay period following the Executive Director’s approval of the promotional appointment or retirement. In the case of retirement, the parties understand that this lump sum payment will not be PERSable (i.e. counted towards base salary or final compensation for CalPERS retirement calculation).
Merit Pay Premium. 1. Regular full-time employee who are paid at Step “c” or “d” under the terms of this Program shall receive premium pay in the amount of one and one half percent (1.5%) of their annual base salary upon receipt of an annual performance evaluation of “Outstanding”. This premium pay will not be an adjustment of base salary and will be made in twelve (12) equal monthly installments.
2. Regular full-time employee who have been paid at Step “e” under the terms of this Program for at least one (1) full year shall receive premium pay in the amount of four percent (4%) of their annual base salary upon receipt of an annual performance evaluation of “Exceeds Expectations” or eight percent (8%) of their annual base salary upon receipt of an annual performance evaluation of “Outstanding”. This premium pay will not be an adjustment of base salary and will be made in twelve (12) equal monthly installments.
Merit Pay Premium.
a. The parties intend to maintain the existing evaluation process and to conform the evaluation process to the following. The Port will continue to evaluate employees on an annual basis, with evaluations performed either December 1 or June 1, depending on the employee’s anniversary date, provided that the employee has been in the classification for one full year pursuant to the eligibility requirements as set forth in Administrative Policy (“AP”) 412 and/or AP 421. The concept of this performance incentive program is to reward superior performance of employees. At the end of each period, employees will be rated on their demonstration of competencies using the following rating scale (as set forth in AP 412 and/or AP 421): • Outstanding • Exceeds Expectations • Meets Expectations • Needs Improvement • Unsatisfactory
Merit Pay Premium. 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 who are at Step “c”, “d” or “e” (i.e. at Step “e” for less than one year), and who receive an “Outstanding” Overall Rating on their annual performance appraisal, shall receive additional premium pay in the amount of one and one half percent (1.5%) of their annual base salary. This premium pay is not added to base salary and will be made in twelve