{"id":29114,"date":"2024-01-09T14:33:55","date_gmt":"2024-01-09T13:33:55","guid":{"rendered":"https:\/\/www.promotiv.si\/business-performance-bonus\/"},"modified":"2024-01-09T14:33:55","modified_gmt":"2024-01-09T13:33:55","slug":"business-performance-bonus","status":"publish","type":"post","link":"https:\/\/www.promotiv.si\/en\/business-performance-bonus\/","title":{"rendered":"Business Performance Bonus"},"content":{"rendered":"

Business Performance and Work Performance<\/strong><\/h2>\n

In accordance with the Employment Relationships Act – ZDR-1<\/a>, the salary is composed of the basic salary, the salary for work performance, and supplements. According to the second paragraph of Article 126 of ZDR-1<\/a>, an integral part of the salary is also payment for business performance if agreed upon by a collective agreement or employment contract. When assessing the definition of specific payments, it is appropriate to consider the purpose of regulating individual salary components, as determined by the second paragraph of Article 126 of ZDR-1<\/a>. It is especially important to note that payment for business performance depends on the success of the economic entity (employer), as already implied by the linguistic interpretation of the concept. Therefore, business performance is a reward that the employer allocates to employees based on the overall good performance of the company.<\/p>\n

In contrast, work performance is linked to the individual work results of each employee or a group of employees. Criteria must be predetermined so that employees know what results are expected of them and what work results will be rewarded. The formulation of criteria is left to the discretion of the employer, as different activities have different work processes that require different criteria suitable for measuring work performance. Payment for work performance is always part of the salary and must be paid in cash, included in the employee’s annual taxable income.<\/p>\n

Taxation of Business Performance Payment<\/h2>\n

According to ZDR-1<\/a>, all payments, both rewards for work performance and rewards for business performance, must be made in cash. However, this does not apply to tax-favored payment of business performance according to ZDoh-2<\/a>.<\/p>\n

In accordance with the 12th point of the first paragraph of Article 44 of the Income Tax Act – ZDoh-2<\/a>, payment for business performance is not included in the taxable income if:<\/p>\n