Bonus

What is Bonus?

A bonus is a form of additional compensation paid to an employee beyond their base salary, typically tied to individual, team, or organisational performance. Bonuses can be discretionary, where the employer decides whether and how much to pay, or non-discretionary, where they are promised based on meeting defined criteria. Common types include annual performance bonuses, signing bonuses, retention bonuses, spot bonuses for exceptional contributions, and profit-sharing bonuses. Bonus structures are an important tool for motivating employees, rewarding achievement, and aligning individual effort with business objectives.