Pay · HR glossary

Performance Bonus

A performance bonus is an additional payment linked to specified results or assessed performance. It may depend on individual, team or company measures under a defined plan.

Example

An employee becomes eligible for a bonus when agreed sales and quality conditions are met, with the final payment calculated after the measurement period.

What to keep in mind

Explain thresholds, discretion, payment dates and treatment of changes in employment. A target bonus in an offer is different from a guaranteed amount unless the terms expressly say otherwise.

Further reading

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