Skip to content

Latest commit

 

History

History
60 lines (39 loc) · 7.2 KB

compensation.md

File metadata and controls

60 lines (39 loc) · 7.2 KB
Raw

Compensation and Bonuses Information

We have different base salary "stairs" in different regions for our full-time employees (not contractors).

As a rule, our full-time employees will receive compensation depending on profession (e.g. software engineer or QA), experience (defined by "Level"), and period working in our company, see more information below.

In addition to the base salary (defined by individual employment contracts), all our employees who start working on our customer's projects are entitled to receiving monthly bonuses, depending on income, described in the relevant section below.

Bulgaria R&D Salary Stairs for Software Engineers

Please see the base salary stairs for all our Bulgarian R&D full-time software engineers (with exceptions, see info below).

Level Work Period Gross Salary BGN Raise
Level 0 0 - 6 month during probation 933 BGN +0
Level A 0 - 6 month 1866 BGN Gross +0 (1560 = 2*933)
Level B 6 month - 12 month 2066 BGN Gross +200
Level C 1 year - 2 years 2466 BGN Gross +400
Level D 2 years - 3 years 3066 BGN Gross +600
Level E 3 years - 4 years 4066 BGN Gross +1000
Level F 4 years - 5 years 5666 BGN Gross +1600
Level G 5 years - 6 years 8266 BGN Gross +2600
Level H 6 years - 7 years 12466 BGN Gross +4200

Notes:

  • Level 0 is for initial probation period (6 month) and paid Internship. Some employees who have already much of past work experience or can demonstrate extensive knowledge/skills will be hired into Leval A and skip Level 0.
  • We define Level A salary as the official Bulgarian minimum Salary * 2 (currently it’s 933 leva, Gross). That way if the official minimum salary gets reindexed, we also automatically raise everything yearly.
  • it’s the same idea as in Fibonacci numbers used above: 200, 400 (200+200), 600 (200+400), 1000 (400+600), 1600 (600+1000), 2600 (1000+1600), 4200 (1600+2600), ...
  • salary raised according to LEVEL, not according to years! We measure years of work at the company, but only employee performance and skills define the level, not the number of work years in the company. So the "amount" of years given for demonstration purposes only!!! It’s possible some engineers progress faster than others and move levels faster (according to performance reviews we will do in the future) and some engineers may progress slower than others and stay at the same level for multiple years (or indefinitely). We later will describe formally each level's minimum requirements, but for now, it’s at the manager's discretion. Other companies are using positions for that like Junior, Senior, Senior II, Staff, Lead, etc. For now, we will just use single letter Levels and call everyone who works less than 6 months Junior.
  • new employees with pre-existed experience might be hired into any Level, not necessarily into level A.

IMPORTANT: While we do have salary stairs as a reference of our employees monthly compensation base, exact amount of salary legally bind to individual employment contracts. Please use the amounts above for information purposes only, not as legal bind values.

Income-based Bonus for our selected Employees and selected Contractors.

Most of our full-time employees (usually after the probation period) and selected contractors, who work on customers' projects are entitled to receive bonuses from income our company receives from customers/partners from the work done by employee/contractor on a monthly basis, as long as such income exceeds expenses our company have in regards to employment/work of the employee/contractor.

It's a 10% bonus from the NET Income value our company receives to the bank account from customers/partners from the work done by employees or contractors on a monthly basis.

For example, if Employee A worked in Feb 2020 on some customer project and the customer paid $3,000.00 USD for work done by Employee A to our company (that amount is the NET amount which gets into a company bank account, i.e. all possible bank and other fees are already deducted), such employee will receive $300.00 GROSS bonus for work over that month (paid to an employee by our company during next month, i.e. in March 2020). In order to calculate the NET bonus value, it's required to deduct all taxes paid by the company (employer) on the salary (bonus) paid to employees. In Bulgaria, it's easy to use https://kik-info.com/trz/zaplata.php to calculate the approximate NET amount from the GROSS amount.

Profit-based Compensation for selected Contractors

It's a 75% compensation from the NET Income value our company received to a bank account from our customers/partners from the work done by the contractor on a monthly basis minus all expenses related to the work of a given contractor (including, but not limited to base salary if exists, taxes, office space required for the contractor to work, insurance costs, additional benefits costs, fees from bank transactions, software used in connection to work, and so on). In short - it's a 75% of the "NET Profit" that the company makes out of work by a given contractor.

For example, consider Contractor C, who worked in Feb 2020 on a customer project and the customer paid $3,000.00 USD for work done by Contractor C to our company (that amount is the NET amount which gets into a company bank account, i.e. all possible bank and other fees are already deducted). Let's assume Contractor C used a Visual Studio Professional license which costs 50$ per month, used internet connection provided by our company which cost 30$ per month and used shared office space provided by our company for his work which costs $100 per month. In such case, the total expenses which our company paid for the work of the given Contractor are: $180.00 USD.

So, in our example above, the Profit value is $3,000.00 USD - $180.00 USD = $2,820.00 USD. The contractor is entitled to receive 75% from $2,820.00 = $2,115.00 USD. Our company is entitled to keep 25% from that $2,820.00 = $705.00 USD.

Of course, it's the responsibility of the Contractor to pay all required taxes from the compensation received (or they will be deducted from the compensation amount and paid by our company according to civil contracts), same as it's our company's responsibility to pay relevant taxes from our company profits.

Notes on Bonuses and Compensations

  • for each Employee / Contractor only one specific theme ("Income Based Bonus" or "Profit Based Compensation") can be applied at company discretion according to employment/work contract conditions, base salary, amount of income generated by employee/contractor, employee skills, work hours and many other details. It means that Employee A and Contractor B can be granted with Income Based Bonus described above, while Contractor C can be granted with Profit Based Compensation described above, Employee D may not be granted any bonuses and Contractor E may not be granted any bonuses or profit based compensations.

  • we are building Gauzy project to calculate bonuses and compensations from Income (both Income Based Bonuses and Profits Based Compensation). Meanwhile, we calculate both types of bonuses and compensations manually for each employee/contractor individually.