Bonus
An additional payment made to an employee, usually to reward performance or the achievement of targets.
A bonus is a variable payment on top of base salary, awarded to recognise strong performance, the delivery of specific goals or overall business success. It can be individual, team-based or company-wide.
Bonuses motivate when the criteria are clear, achievable and consistently applied. Vague or discretionary schemes can breed resentment if employees feel the goalposts move.
Employers should be explicit about whether a bonus is contractual or discretionary, how it is calculated and when it is paid, to manage expectations and reduce disputes.
