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Compensation

Bonus

Additional financial compensation paid to employees beyond their base salary.

Full Definition

A bonus is a supplemental form of compensation paid to employees in addition to their regular salary. Bonuses can be performance-based (tied to individual or company targets), discretionary (at employer's decision), contractual (guaranteed under employment contract), or seasonal (such as a year-end or Eid bonus). HR and payroll software automates bonus calculations, tracks eligibility, and processes payments as part of the regular payroll cycle.

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