Incentive Slabs
The rules that turn a salesman's achievement against target into incentive pay: percentage of sales, a fixed amount, or both.
Why and when you use it
Incentives motivate only if they are clear and calculated the same way for everyone. Instead of working them out on paper every month, you define slabs once here, and Payroll uses them to fill the Incentive column for each salesman. The owner or HR sets these, usually at the start of a financial year.
Before you start
- Agree the incentive policy with your team
- Set targets for salesmen (Targets)
Step by step
- Open Incentive SlabsUnder Stockivio ERP, open Incentive Slabs. The list shows Slab Name, Achievement Range, Incentive Type, Value, Hybrid Fixed (₹) and Status.
- Press Add SlabPress Add Slab and give it a name you will recognise, such as 100 to 120 percent.
- Set the achievement rangeEnter the range of target achievement the slab applies to, for example from 100% to 120% of the sales target.
- Choose the incentive typePick Percentage of Sales, Fixed Amount (₹), or Hybrid (Percentage + Fixed).
- Enter the valueFor a percentage type, enter the percent in Value. For a fixed type, enter the rupee amount. For Hybrid, enter the percent in Value and the rupee part in Hybrid Fixed (₹).
- Save and check the ladderPress Save Slab. Add the other slabs so the ranges follow on without gaps or overlaps, and keep each one active in Status.
- Let payroll use themWhen you run Auto-Generate Payroll, each salesman's achievement is matched to a slab and the Incentive column is filled.
Worked example
Sharma Traders pays nothing below 90% of target, ₹2,000 fixed from 90% to 100%, 2% of sales from 100% to 120%, and 2% plus ₹3,000 above 120%. In November Ravi sells ₹5,40,000 against a ₹5,00,000 target.
- Add Slab: name Below 90, range 0 to 90, Fixed Amount (₹), Value 0; Save Slab.
- Add Slab: name 90 to 100, range 90 to 100, Fixed Amount (₹), Value 2,000; Save Slab.
- Add Slab: name 100 to 120, range 100 to 120, Percentage of Sales, Value 2; Save Slab.
- Add Slab: name Above 120, range 120 and above, Hybrid (Percentage + Fixed), Value 2, Hybrid Fixed (₹) 3,000; Save Slab.
- Ravi achieves 108%, which falls in the 100 to 120 slab: 2% of ₹5,40,000 = ₹10,800.
Result: When November payroll is generated, Ravi's Incentive column shows ₹10,800. If Imran reaches 95% of his ₹4,00,000 target, his line shows the fixed ₹2,000.
💡 Tips
- Write the slabs down as a simple table and share it with salesmen before the month starts.
- Check that ranges do not overlap; a salesman at exactly 100% should fall in only one slab.
- Keep old slabs inactive rather than deleting them, so you can explain past payouts.
⚠️ Common mistakes
- Leaving a gap between ranges (for example 90 to 99 and 100 to 120) so someone at 99.5% gets nothing.
- Typing 20 instead of 2 in a percentage Value. Test with one salesman's numbers before payroll day.
Questions
Is incentive calculated on sales including GST?
Incentive is based on the sales figure used in the salesman's achievement. Check the Actual Sales in Performance to see which figure is used and agree the policy with your CA.
Can I change slabs mid-year?
Yes. Make the new slabs active from the next period and mark the old ones inactive so earlier months are not disturbed.
🎬 Video walkthrough (script — recording coming soon)
- Scene 1: Open Incentive Slabs and explain the columns.
- Scene 2: Add the 90 to 100 fixed slab.
- Scene 3: Add the 100 to 120 percentage slab.
- Scene 4: Add the Hybrid slab with Hybrid Fixed (₹).
- Scene 5: Work Ravi's 108% example on screen.
- Scene 6: Jump to Payroll and show the Incentive column.