The commission plan template
Most commission arguments start with something the plan didn't say. This one fits on a page. The top line tells each rep how they're paid, and the rest covers when a deal counts, when it's paid and what happens when a customer cancels. You and the rep both sign it before the first month starts.
Copy it, print it, or download it for Word or Excel. It's free, with no sign-up. In Excel, the months table works out each month's attainment and commission.
Commission plan: [team or role]
Plan period: [from] to [to] Written: ______ Next review: ______
The plan in one sentence
- You earn [rate] on [what counts], paid [when], and [the higher rate] on everything above quota.
Who it covers
- Roles: ____________
- A new rep's first months: ____________ (for example, half the quota for the first two)
Pay
- Base salary a month: ______
- Target commission a month: ______
- On-target earnings a month: ______ (base plus target commission)
- Quota a month: ______
The rates
- Commission rate up to quota (%): __
- Accelerator above quota: __ (1.5 means one and a half times the rate)
- Rate above quota (%): __
- Most a month can pay: ______ (blank means no cap)
What counts
- A deal counts when: ____________ (signed, invoiced or paid)
- Commission is worked out on: ____________ (the first year's contract value, the invoice or the margin)
- Deals that don't count: ____________
- Two reps on one deal: ____________
When it's paid
- Paid on: ____________ (for example, the 15th of the next month)
- The statement lists each deal, its value and its commission, and goes out on: ______
Clawbacks
- Clawback period in days: __ (if a customer cancels or doesn't pay within it, the commission on that deal comes off the next payout)
- Leaving: deals that counted before the last day are paid on: ____________
Questions and changes
- Days to raise a question about a payout: __
- Who to raise it with: ____________
- Notice before the plan changes, in days: __ (changes are made in writing)
The months
| Month | Sales | Attainment (%) | Commission |
|---|---|---|---|
| Jan | __ | __ | __ |
| Feb | __ | __ | __ |
| Mar | __ | __ | __ |
| Apr | __ | __ | __ |
| May | __ | __ | __ |
| Jun | __ | __ | __ |
| Jul | __ | __ | __ |
| Aug | __ | __ | __ |
| Sep | __ | __ | __ |
| Oct | __ | __ | __ |
| Nov | __ | __ | __ |
| Dec | __ | __ | __ |
Signed
- Rep: ______ Date: ______
- Manager: ______ Date: ______
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How to write the plan
Start from what a rep should earn, and work back to the rate.
- Set on-target earnings first: the base plus the commission a rep earns at quota.
- Divide the target commission by the quota to get the rate, so S$1,000 on S$12,500 is 8%.
- Pick the date a deal counts, and choose paid over signed if your customers pay late, since a signed deal can still fall through before any money arrives.
- Write the plan in one sentence, then fill in the rest.
- Sign it with each rep before the period starts.
What to include so it holds up
- A deal counts on one written date.
- Every statement lists each deal with its value and commission, so a rep can check it without asking you.
- A clawback has a time limit and takes back only what was paid on that deal.
- A question about a payout has a deadline and a named person to ask.
- The plan changes only in writing, with notice before the month it applies to.
A filled-in plan
Lim Jun Wei is an account executive. He and all these numbers are made up. They aren't a typical rate or typical pay, and they don't promise anyone an income.
- Pay: S$4,000 base and S$1,000 target commission a month, so on-target earnings are S$5,000.
- Quota: S$12,500 a month of first-year contract value at 8%, so a month at quota pays S$1,000.
- Above quota: an accelerator of 1.5, so every dollar past S$12,500 pays 12%. No cap.
- A deal counts when the customer pays the first invoice, and commission is paid on the 15th of the next month.
| Month | Sales (S$) | Attainment | Commission (S$) |
|---|---|---|---|
| January | 10,000 | 80% | 800 |
| February | 12,500 | 100% | 1,000 |
| March | 15,000 | 120% | 1,300 |
In April, a S$2,000 February customer cancelled inside the 90-day clawback, so S$160 came off May's payout.
Here are the sums. S$4,000 + S$1,000 = S$5,000. S$12,500 x 8% = S$1,000. S$10,000 x 8% = S$800. S$2,500 x 12% = S$300, and S$1,000 + S$300 = S$1,300. S$2,000 x 8% = S$160.
Which commission structure fits a small team
Pick one. Stack two, and reps can't check their pay.
| Structure | How it works | Fits | Watch for |
|---|---|---|---|
| Flat rate | One rate on every deal | A first rep or a simple product | It pays the same for the deal you want and the one you don't |
| Rate with an accelerator | A higher rate on everything above quota | A team where quota is reachable | If quota is too high, the accelerator never pays |
| Tiered | Rates that step up at set amounts | Reps with very different deal sizes | Keep it to three tiers, or nobody can check the maths |
| Base plus commission | A salary with a lower rate on top | Long sales cycles, where months go by between deals | If the rate's too small, nobody reads the statement |
| Draw against commission | An advance each month, paid back from commission | A new rep ramping up | Write down whether it has to be paid back, and read MOM's rule on advances below |
Singapore pay rules that touch this plan
This isn't legal advice. These are quotes from Singapore's Ministry of Manpower (MOM), read on 2 November 2026. They apply to employees covered by the Employment Act.
- When commission is paid: MOM says how and when commission is paid "depends on what is in your employment contract" or the company's existing practice. So the Paid on line needs to match the contract.
- When a rep leaves: MOM says the amount of commission "should" be "discussed and agreed in writing between employers and employees" where it forms a large part of pay. That's the Leaving line, so don't leave it blank.
- Deductions: "your employer can deduct your salary only for specific reasons." MOM lists "overpaid salary and unearned employment benefits" among them, recoverable in full. It doesn't say whether a commission clawback counts, so get advice before one comes off salary.
- Advances: MOM says these can be deducted "in instalments spread over not more than 12 months", and each instalment "should not exceed 25% of your salary for the salary period." Check any draw against that.
- Disputes: MOM points employees and employers with a dispute over commission to the Tripartite Alliance for Dispute Management (TADM).
What Palby Sales Tracker counts
Palby Sales Tracker doesn't run payroll, and it doesn't work out commission for a general sales team. Your plan and your payroll do that.
It counts what reps do: calls, meetings and closes, each logged with a tap on their phone. The board shows this week, last week, this month or any dates, with each tile's count. See how leaderboards work.
30 minutes. You choose the day and the time.
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Common questions
Who it covers, the rate, what counts as a sale, when it's paid, what happens when a customer cancels, how to raise a question, and both signatures. The template has a line for each.
Multiply the sales that count by the rate. With an accelerator, pay the normal rate up to quota and the higher rate on everything above it, and the [commission calculator](/sales-tracker/free-tools/commission-calculator) shows each step.
Work it back from pay. Decide the commission a rep should earn at quota and divide it by the quota, so S$1,000 on a S$12,500 quota is 8%.
On-target earnings: the base salary plus the commission a rep earns at 100% of quota.
Paid is safer if customers pay late or cancel often, and signed is simpler for the rep. Whichever you pick, write it down and pair it with a clawback period.
Commission taken back when a customer cancels or doesn't pay within a set time. Write the time limit into the plan, and take back only what was paid on that deal. In Singapore, read MOM's rule on salary deductions and get advice before one comes off salary.
Yes, in writing, with notice before the month it applies to, and subject to what the employment contract says. Changing it mid-month or backdating it is how a team stops trusting the plan.
No. It counts calls, meetings and closes. The Excel file here works out each month's commission from your rate and quota.
Yes. Fill in the rate, the quota and the accelerator, and the months table works out each month's attainment and commission. For Google Sheets, upload it to Google Drive and open it there.
Yes. Copy it, print it or download it. There's no sign-up and no form to fill in.
Sources
- MOM, Allowable salary deductions, read 2 November 2026
- MOM, Paying salary, read 2 November 2026
- MOM, Am I entitled to commission payments if I've resigned and left the company?, read 2 November 2026

