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Well-structured bonus schemes align rewards with firm and particular person results, which motivates staff and improves efficiency. These bonuses link worker rewards directly to company profitability or manufacturing output. The commonest kind is a 13th cheque or annual bonus, which is usually guaranteed or pro-rated based mostly on service during the yr. If the bonus is described as discretionary, the employer has flexibility but must still exercise that discretion lawfully and fairly. Where a bonus is guaranteed—for example, an agreed thirteenth cheque written into your contract—the employer must pay it according to the settlement. The Essential Situations of Employment Act (BCEA) units rules for remuneration, payslips and deductions, however it does not require employers to pay bonuses.
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