HR Glossary


Bonus is a financial reward given by the employer to its employees, shareholders and sometimes to its customers as well. It is a gesture of gratitude for doing one’s job well. It is an extra amount or reward in form of cash or gift and is not a part of your existing salary. It is a global practice and usually given at the time of holiday or financial year-end to employees with merit and outstanding performance.

A bonus is a gesture, which helps in boosting employee’s morale to achieve higher goals for the company and self-growth. It helps to focus better at your skill sets and drive you to better your skills.

The distribution of the bonus is different for different companies. Some employee’s work on commission basis and gets certain percentage for bringing business while other’s may have it pre-defined in their contract. With time bonuses have become flexible and purely on performance irrespective of your position in the organisation