Bonus Agreement & Incentive Program 2026/2027 – Commission, KPI & Excel | Word/PDF

Bonus Agreement & Incentive Program Template 2026/2027 – commission, KPI and Excel

Draft and document a clear bonus agreement for employees using editable Word templates, equivalent searchable PDF documents, and an Excel workbook for calculations and decisions. The package includes a bonus policy, individual bonus agreement, performance bonus scorecard, commission agreement, and bonus notification – along with two guides.

It is suitable for employers, HR, payroll, finance, sales management, and companies looking to build a transparent variable compensation model. The templates are written for Swedish employment conditions and should be adapted to each employment contract, collective agreement, pension terms, and existing payroll process.

Digital delivery: 15 files in a ZIP – seven editable Word (DOCX), seven searchable PDF, and one Excel workbook (XLSX) with nine tabs. The five main templates are in Swedish. Swedish and English user guides are included.

Important: A calculated bonus in Excel is not the same as a legally earned or approved bonus. An agreement or a documented employer assessment, applicable terms, and correct payroll processing determine what is actually to be paid out.

Excel bonus – KPI, commission, approvals and dashboard

The workbook's nine tabs are Overview, Program, Participants, Goals & KPIs, Results, Bonus Calculation, Decisions, Payout, and Read me. A common set of program, participant, and bonus IDs makes calculations and decisions traceable without needing to copy names or personal identity numbers to all tabs.

Bonus calculation: Enter bonus base in SEK, goal achievement as a percentage, weight/factor, and if necessary, an individual maximum amount. Excel calculates an illustrative gross result and applies the cap when one is entered. Results against goals can be calculated automatically on the Results tab when both are numerical and the target amount is positive. Do not use the quota calculation without adjustment for goals where a lower value is better.

After the KPI review, a separate bonus decision is recorded with the authorized decision-maker and manually approved amount. The actual payout is recorded in a third, separate tab for reconciliation against the payroll system. This prevents potential calculated bonus, decided gross salary, and actually paid gross salary from being mixed up.

The dashboard’s eight key performance indicators are programs, active participants, defined KPIs, reviewed results, calculated bonus, approved bonus, gross paid, and pending decisions. An empty register shows zero as a technical start value.

The formulas have been tested with a bonus base of 10,000 SEK and 85 percent goal achievement: 8,500 SEK without a cap, 6,000 SEK with a cap. Separate decisions and payouts also resulted in 6,000 SEK when this was approved and booked manually. Test data is not included in the empty delivery file.

Excel is not a payroll system: there is no automatic tax calculation, employer social security contributions, holiday pay calculation, pension calculation, or legal assessment of earnings.

How to implement a bonus agreement – step by step

1. Establish model: individual target bonus, commission-based salary, or future assessment of one-off bonus. Specify which compensation is contractual.
2. Review collective agreements and employment contracts as well as the authorization of the decision-maker.
3. Define the bonus period, the time of earning, any thresholds, and changes during the period.
4. Write clear KPIs with weight, unit of measure, traceable source, and measurement manager.
5. Document bonus base and cap and how returns, corrections, and settlements are actually to be handled.
6. Assess absence and termination based on valid individual terms and law, not through automatic standard deductions.
7. Check holiday pay and pension: variable salary can affect holiday pay, and occupational pension agreements may have their own rules.
8. Create programs and participants in Excel with limited personal data and your own internal IDs.
9. Review KPIs and document decisions separately from the calculation row, so that authorization and decision paths are traceable.
10. Handle actual payout in the payroll system and follow up on tax deductions, employer social security contributions, and pay slips.

What applies to bonus and commission under Swedish law?

Bonus is normally taxable compensation for work

The Swedish Tax Agency states that bonus and commission are normally compensation for work. An employer therefore needs to handle current rules for tax deductions and employer social security contributions as well as reporting in the employer return. Full employer contributions or reduced contributions may vary depending on the employee's circumstances, the timing, and current regulations. The template therefore does not use an assumed universal percentage.

Contractual bonus and discretionary compensation

A target bonus agreed through clear terms is different from a future, voluntary employer decision. It is not enough to call the bonus "voluntary" if the document's actual terms imply a salary commitment. Earning criteria, termination, absence, measurement periods, and changes must be formulated so they are compatible with agreements and applicable law. Do not perform automatic clawbacks of already earned compensation.

Holiday pay on variable salary components

The Annual Leave Act (1977:480) Sections 16–16 b contain different calculation methods. When salary regularly consists of fixed and variable parts and the variable part can be estimated at at least ten percent of the total salary during the leave year, holiday pay should normally be calculated according to the percentage rule under the conditions specified in Section 16 b. With the "same pay" rule in Section 16 a, there are special rules for variable salary components, including an amount corresponding to twelve percent of accrued variable salary during the leave year. Collective agreements and the actual work schedule may affect the assessment.

Sales commission – when is commission earned?

Commission can, for example, be tied to a completed deal, delivery, customer payment, or another clearly defined event in advance. Describe the commission's calculation basis, settlement for credit notes, termination of employment, and when payout occurs. An internal Excel document does not alone determine what has become earned salary.

Bonus, equal treatment, and personal data

Use objective and transparent assessment criteria. Consider the provisions of the Discrimination Act as well as how personal data regarding employee performance and compensation is handled according to GDPR. The registers contain no personal identity numbers or fabricated employment data upon delivery. The occupational pension’s treatment of variable compensation is assessed specifically according to the relevant pension agreement and any collective agreement.

Related document templates at Mallbutiken.se

• Salary Policy & Salary Revision – for salary criteria, salary reviews, and the company's overall compensation structure.
• Employment Contract – Template Package – for basic employment terms that the bonus agreement complements.
• Pension Policy & Occupational Pension – for separate assessment of pension and benefit structure.
• Salary Exchange Agreement Pension – when salary and pension benefits are handled through special agreements.

Frequently asked questions about bonus and commission agreements

Do you need to write a separate bonus agreement?

A clear written bonus agreement reduces the risk of disagreement regarding objectives, earning, period, calculation, and payout. The need is determined by existing terms and any collective agreement.

What does a bonus agreement for employees contain?

Usually parties, bonus period, goal criteria, measurement method, calculation formula, any caps and adjustments, time of earning, decision order, and payment terms.

Are bonus and commission considered salary?

Bonus and commission are normally counted as compensation for work, which affects tax, employer social security contributions, and sometimes calculation of holiday pay and pension.

Should holiday pay be calculated on bonus?

Variable salary can be included in the holiday pay basis. The correct calculation method must be determined according to the Annual Leave Act's rules and any collective agreement.

Can an employee lose a bonus upon termination?

It depends on the bonus agreement, when the bonus is considered earned, and applicable law. There is no general rule that already earned salary automatically lapses when employment ends.

Can Excel calculate performance bonus with a cap?

Yes. The template calculates an illustrative gross compensation from bonus base, goal achievement, and factor, and can limit the calculation result to a specified cap. Actual approved amount requires a separate decision registration.

Can Excel calculate net salary or employer social security contributions?

No. Employer social security contributions and tax deductions depend on individual and time-dependent rules and must be handled in correct payroll administration.

Is a commission agreement included?

Yes. A separate Swedish commission agreement for sales is included, with earning, measurement documentation, settlement, and terms for termination.

Are the agreements available in English?

The five main templates are Swedish. A separate English user guide is included, not full English agreement versions.

Official sources

• The Riksdag – The Annual Leave Act (1977:480), Sections 16–16 b
• Verksamt – Salary and variable compensation
• Swedish Tax Agency – Compensation for work, bonus, and commission
• Verksamt – Holiday pay with variable salary components
• Swedish Tax Agency – Employer social security contributions

Svenska Dokumentmallar · Version 1.0, 2026/2027 · Source review October 18, 2026 · 7 DOCX + 7 searchable PDF + 1 XLSX.