Bonus

What is Bonus ?

‘Bonus’ is a financial stimulus provided to employees over their normal payroll. A bonus is different from a ‘benefit’ in the sense that it is always provided as money. Bonuses are generally awarded during festival periods to please the employees.

It might be awarded to both senior-level executives as well as entry-level employees. It might also be advertised as an incentive for candidates to join the company.

Sometimes, bonuses are also awarded to the shareholders in case the company performs well. Similarly, long term employees might also be given bonuses for their prolonged loyalty to the company.

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