What is a Christmas Bonus?
It is an incentive received by employees during Christmas time. That is expected by most, but some organizations don’t follow this typical bonus percentage or mistake it for a year-end bonus which is not the case here. As mentioned above, it is considered a festive gift as a symbol of appreciation equally distributed based on different factors according to the employers.
Benefits of a Christmas Bonus:
Receiving a gift has, undeniably, several benefits, especially for employees who work hard every day. In fact, an addition to your salary can be a helpful gesture during this season that usually consists of a lot of spending from buying gifts to holiday dinners, etc. Other than the material incentive and impact, this incentive has an immaterial influence on employees also:
Mood Booster: This bonus makes the employees feel more valued and appreciated for the work that they’re providing, which will boost their morale and spirit.
Burnout diminisher: In addition to the previous point, a Christmas bonus can diminish work burnout, ease the tension, and dampen the lack of motivation, consequently.
Productivity booster: all of this leads to better productivity. Hence, it will increase the employees’ engagement and boost their enthusiasm to work efficiently in a place that values them and their hard job.
Types of Bonuses:
The incentive usually consists of cash addition, but it doesn’t have to be only monetary. It can also consist of:
Food;Gift certificates;Gift cards and vouchers;Extra Days off;Gift tickets for Christmas events;Gift Baskets;Activities organized for all staff.
It depends on the employers and their creativity to make this time of the year more joyful for everyone.
Guidelines for Christmas Bonuses:
In this section, you will find out more about what guidelines the employers usually take into consideration when giving the bonuses:
Fairness: Employers will determine the bonus in a fair way equitable to every employee in order to not make anyone feel undervalued for their fruitful work, including all the staff together in uniformity and consistency.
Professionalism: Even if it’s a time of giving and joy, everyone must remain professional, keeping in mind the work ethics and rules, and consequently setting aside all personal relationships unrelated to their performance at work, especially when evaluating it for their Christmas bonuses.
Communication: It is preferred and expected to be given a Christmas incentive during this festive time. However, as mentioned above, some organizations may choose not to do so. If this is the case, the employers shall communicate this with the staff in order to let them know in case they were counting on this bonus as part of their monthly income, especially if this was stated in their contract signed before their journey in the company.
Confidentiality: The Christmas bonuses should be disclosed to anyone other than the employer and the employee in question if each staff is being evaluated for his/her own performance, then it is quite preferable to keep such information confidential in order to avoid any conflict that may result.
Transparency: There may be many bonuses throughout the year. That is why employers are expected to clarify each incentive and what it constitutes compared to other performance-based incentives. That will ensure transparency.
When Christmas comes, you may take this opportunity to enjoy yourself in this time of festive and joyfulness because you deserve it as much as everyone else. Therefore, whether you were planning a trip, had your eye on something you couldn’t prioritize before, wanted to buy your loved ones or treat them, or even had debts to pay then, this is your chance!. Finally, now that you’re aware of what your Christmas bonus guidelines typical bonus percentage might constitute, this will leave you motivated, keeping in mind that you are valued.
Is there any tax on the bonus?
If the bonus consists of cash, then it is considered an additional income, consequently, it is taxable.So, one could say that there is tax in bonus that are provided.
How much is a Christmas Bonus?
That actually depends on the size of the enterprise, its profit performance, and your salary range. That may also be stated in the contract you sign as a 13-month salary.
