What is a Bonus Letter?
A Bonus Letter is an official communication by an employer to an employee regarding his/her entitlement of bonus. The letter usually contains information about the amount of bonus, any policy or reason for grant of bonus, and when can individual expect to receive the payment.
A high-quality draft covers, among other things, the following matters:
- Date and Employee Details
- Introduction and acknowledgement of employee's contributions
- Bonus amount and the basis for calculation (e.g., performance, company profits)
- Payment timelines- when and how the bonus will be paid (e.g., lump sum, along with the next salary payment)
- Conditions, if any
