How Do Bonus Payments Work?

A bonus is an arrangement which gives working people an extra payout, sometimes once a year, sometimes several times in a year. One of the most common types of single bonus given out is a Christmas, or holiday, bonus. You can sometimes make an arrangement with your employer to receive it at a different time.

The bonus you receive is usually equal to a portion of your regular monthly salary, at least 50 %.

The math master on vacation in the winter after receiving her Christmas or holiday bonus.

Example 1

Saul Seal’s salary for the year is $24000. The company policy is that employees also receive 8.5% of their annual regular salary as a holiday bonus.

How much will Saul’s holiday bonus be?

Holiday bonus 2024 = Total annual salary ×percentage of annual salary = 24000 × 0.085 = 2040

Holiday bonus 2024 = Total annual salary ×percentage of annual salary = 24000 × 0.085 = 2040

Mr. Seal will receive $2040 for his holiday bonus.

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