The end of the year brings with it the year's most beautiful holidays and the opportunity for businesses to review their performance in 2017. Financial statements are getting closer and managers assess performance based on defined plans, while making an effort to express their thanks for the effort shown by their employees. Every company has its own tried-and-true practices and ways to reward those who work for them. Paylab portal decided to examine financial benefits in detail.
In general, financial benefits are in no way a given in Europe. Most employees can only dream about financial benefits at the end of the year. Receiving a bit of extra cash in the form of financial bonuses outside the scope of an agreed basic salary is not a common practice in businesses.
Companies which offer financial benefits use to promote them in the job advertisement.
Employers more often choose other forms of non-financial benefits, such as Christmas dinners and parties, St Nicholas Day celebrations for employees' children, small gifts or gift vouchers. Read more about our analysis in Paylab Newsroom.
Christmas bonus - The thirteenth salary is paid to employees according to different terms of law or contract of employment. It shows appreciation from employers to the staff. Employees can assume the right to receive it because it is usually part of contract agreement. Mostly, it is s part of one full monthly salary and paid in December (the 12th month) around Christmas and is traditionally called a Christmas bonus.
Year-End bonus - A reward paid to an employee at the end of the year. Employers voluntarily provide these bonuses as a component of their financial benefits and salary incentive schemes. Employers define these bonuses individually, based on the conditions agreed in the employment agreement and in connection with the employer's financial results. They are typically paid at the end of the year once it is known if a business has generated the desired level of profit. There are also companies that pay these bonuses out on a quarterly or biannual basis, or once a project is finished.
In general, year-end bonuses are the most widespread and generous in management positions, particularly among executive management, given they are often connected to the achievement of defined objectives.