A 13th cheque isn't the only kind of bonus your employer can offer you...
Everyone would like to have a little something extra in the bank every once in a while. It's best to remember to go through your employment contract with a fine-tooth comb before you sign to see exactly what you're entitled to. Better yet, ask about the company's remuneration package and bonus regulations in the interview room already.
Whether you're entitled to a bonus or not, here are the types of bonus you could receive from your superiors anyway.
The 3 types of bonuses that are popular amongst South African employers:
The production bonus
The production bonus is based on:
- production measured against targets
- quality of production
The production bonus is not based on personal performance at all. Rather it is measured against pre-determined company standards, either in the event of (a) additional production or (b) reduced rejection rate.
(a) For example, if you or your department needs to produce 800 boxes of product, and you and your team consistently produces 1 000 boxes, a performance bonus is justified.
(b) For example, your department is willing to write off 20 faulty products per month only. Producing any more faulty products then means you’re operating at a loss. If you produce less than 20 faulty products, you’re doing a great job and qualify for a performance bonus for exceptional quality production.
The 13th cheque
A 13th cheque is a bonus that you as an employee can expect with certainty (only if it’s promised as part your employment contract. The amount and frequency of payment is completely dependent on what your contract says.
This bonus is guaranteed and doesn’t depend on performance or production. Unfortunately, not all companies offer a 13th cheque. If you want to pursue a career in education, we can tell you that government school teachers are rewarded with a 13th cheque in their birthday month every year - that means they receive double their pay that month.
The performance bonus
A performance bonus is normally paid for good performance, and should be based as a percentage of the employee’s salary or wages.
A performance bonus can also be paid as a lump sum to a department, and split up in equal amounts to each employee in that department. Do note that this bonus is only paid if excellent performance (i.e. work exceeding company standards) is consistently exercised.
In other words, if you’d like to be up for this type of bonus, you should consistently walk the extra mile. Encourage your team members to do the same to increase your chances of qualifying for a bonus. Companies usually reward a performance bonus at a fixed time of the year.
Other types of bonuses:
Spot Bonus Award
It is not unheard of for a manager or supervisor to randomly reward the top performing employee. Whether you’re recognised by management self or nominated by your peers, you can get a spot bonus for simply being extra helpful.
It’s random and unpredictable so you’ll never see it coming.
Also read: How to win over your boss
Think of this as an ‘employee of the month’ type of special recognition. Even though you do not get a percentage of your salary as in the other cases, being recognised as a star employee has its benefits. Some companies have a special award ceremony once or twice a year to show appreciation to its top performers.
Noncash rewards for excellent employees could be any of the following:
- special mention at a special ceremony
- awarding of certificate or trophy
- a gift certificate
- a bonus day off
- a great parking space
- lead at the next group project
Are you unhappy with your current remuneration package? Get a new job with Careers24 – there are thousands of better career opportunities, all just a click away.