You can also speak with a human resources representative to find out whether your company pays out a percentage of your salary or a flat rate when they calculate bonuses. Look closely at your employment contract to see if you should receive any guaranteed bonuses. It's important to remember, too, that while the action of providing the bonus may be guaranteed, the amount of a bonus may not. Some types of bonuses are guaranteed while others are not. Signing bonuses and retention bonuses are examples of nondiscretionary bonuses. As long as you meet the requirements detailed in your contract, the bonus is required as part of your compensation package. Nondiscretionary: These incentive-based bonuses are outlined in your employment contract and vary by employer. For example, milestone bonuses are awarded at the discretion of your employer. In many cases, a bonus will either be discretionary or nondiscretionary, as follows:ĭiscretionary: These bonuses are awarded at the discretion of the employer, meaning they are not stipulated in your employment contract and are not guaranteed. Related: How To Calculate Employee Bonuses By Type Discretionary vs nondiscretionary bonuses Some bonus structures have multiple criteria including the company’s financial success, the performance of your team and your individual evaluation results. While many companies provide bonuses in the form of cash, a bonus can take any form as long as it provides value to employees as well as the organization.īonuses can be built into a company's budget in a discretionary fund, or they can be determined by the overall success of the company. Bonuses are a type of compensation paid to an eligible employee in addition to a previously set hourly wage, contract amount or annual salary.

Bonus s