Commission is to help others (as employees) sell and earn a certain percentage.
The way of commission is similar to piece-rate system, including full commission and excess commission. Full commission is a certain proportion of total sales and floating wage system; Excess commission, as the name implies, ensures the completion of a certain amount of basic business, and the excess part will be rewarded with commission. Of course, employees will have a certain basic salary. Commission can be based on individual performance or group performance.
When implementing the commission system, enterprises should pay attention to the following matters in the rules and regulations or labor contracts:
1. Clarify the specific meaning of royalty system and the calculation method of royalty.
First of all, it should be clearly stipulated in the labor contract that the salary calculation method of the employee is "commission salary system"; Secondly, the relevant royalty base, royalty ratio and corresponding calculation method should be clearly stipulated or agreed. For example, is the commission base based on sales, discounted sales or the actual profit of each order?
2. Make clear the payment time and method of royalties.
The payment time can be "commission on receipt", that is, applying for commission based on the sales contract, or "commission on receipt", that is, receiving commission based on the receipt voucher.
3. Make clear the salary and treatment when the benchmark commission index is not reached.
According to the law, under the condition that employees provide normal labor, even if employees have no sales performance or sales performance does not reach the target, enterprises still need to pay wages, which shall not be lower than the local minimum wage standard.