Bonus
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A supplemental payment awarded to an employee on top of their base salary, often tied to individual performance, company profits, or a specific event like signing.
## Bonus
A bonus is a one-time or recurring payment above regular salary. Bonuses can be discretionary (at the employer's choice) or guaranteed (contractual).
### Types of Bonuses
| Type | Trigger | Typical Range |
|------|---------|---------------|
| Performance bonus | Individual/team KPIs | 5–30% of base |
| Annual bonus | Company profits | 1–6 months' salary |
| Signing bonus | Joining | $5K–$100K+ (tech) |
| Retention bonus | Staying through period | 10–25% of base |
| Spot bonus | Ad-hoc recognition | $500–$5,000 |
| 13th month | Statutory | 1 month's salary |
### Tax Treatment
In most countries, bonuses are taxed as ordinary income. In the US, employers may use the supplemental wage flat rate (22% federal) or aggregate method. Many countries apply higher withholding rates to lump-sum payments.
### Regional Variations
- **Japan**: Summer and winter bonuses can total 4–6 months' salary.
- **Singapore**: Annual Wage Supplement (AWS) is a common 1-month bonus.
- **Brazil/Philippines**: 13th month salary is a legal entitlement, not a bonus.