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how to calculate comission

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This is the preferred commission pay type as it guarantees a minimum amount of money each month. Regardless of your role or the company you work for, this article will help you understand your commission-based bookkeeping for startups pay. Depending on how the company runs, you might be paid this commission monthly, bi-monthly or simultaneously with your paycheck. All products and services featured are independently selected by WikiJob.

Calculate your commission

If items are added from the products database, using ‘Add from products‘, then the commission value can be pre-defined in the ‘Products’ module. If you do not enter a ‘Commission starts at…‘ value, then all sales will be subjected to commission calculations. If you change these agent settings you may wish to re-calculate your commission on existing bookings.

This is because the law on overtime, commission and bonus payments being included in holiday pay is based on the EU Working Time Directive, which is 4 weeks’ holiday only. But not all sales commission models are structured in the same way. Some involve base salaries, while others only offer additional pay after agents cross a certain revenue threshold. Consider each sales commission structure below to find one that aligns with your team size and industry, and you’ll be well on your way to keeping agents motivated. ‍However, a number of court decisions since 2014 have changed the landscape.


If for any of the 52 weeks you got no pay at all, use an earlier week in its place for calculating holiday. You should calculate your holiday pay from the last full week that you worked. When invoices are raised for the customer, each individual item can have a percent of commission calculated.

What is the percentage of sales commission?

The average commission rate for sales sits somewhere between 20% and 30% of gross margins, but this depends on the sales structure. Some workers may earn their whole salary through 100% commission, while others earn 10% on top of a base salary.

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