bonus
BOH-nus
/ˈboʊnəs/
A sum of money added to a person's wages as a reward for good performance.
A bonus is typically discretionary and given after a goal is achieved, whereas an incentive is often promised beforehand to encourage the goal.
The story behind the word. The word 'bonus' is simply the Latin adjective for 'good.' It entered the English business vocabulary in the 18th century as a slang term for an extra dividend paid to shareholders, eventually becoming the standard term for extra employee pay.
Word relationships
- incentive: An incentive is designed to motivate future action, while a bonus is usually a reward for past action.
- gratuity: A gratuity is often a tip or a legal end-of-service payment, while a bonus is performance-linked.
- penalty: A penalty is money taken away for poor performance, the opposite of a bonus.
Commonly confused with
- commission: Commission is a fixed percentage of sales, while a bonus is a lump sum reward.
Word family
- bonuses (noun): Plural form of bonus.
Collocations
- annual bonus
- performance bonus
- sign-on bonus
- Christmas bonus
Example sentences
- "The company announced a year-end bonus for all employees following record profits." A typical corporate announcement.
- "The bonus system was introduced to increase productivity in the factories." A historical reference to industrial rewards.
Memory hook
BONUS sounds like 'BONE-US'. Imagine the boss throwing a bone to the hard-working dogs (us). A 'good' thing for 'good' work.
When not to use
Don't use 'bonus' for a regular, expected part of pay like a commission; a bonus is usually an 'extra' surprise or reward.
Fun facts
- The word 'bonanza' comes from the same Latin root, meaning a 'good' weather or a lucky strike.
- In some industries, sign-on bonuses can be larger than the actual starting salary.
Explore more words
discretionary, incentive, incentivize, payoff, bonanza, credit
Take your vocabulary further with LangBlitz
Our English vocabulary app: FSRS spaced repetition, 5,000+ curated words across 119 topic groups, CEFR A1 to C2. Explore your mastery with the beautiful Vocabulary World feature.