Guide

Employee Bonus Policy Template

Use this page to structure a clear bonus policy before employees receive confusing or inconsistent payout messages.

Policy sections to include

Eligibility: who can earn a bonus and when.
Bonus types: annual, STIP, retention, discretionary, commission or holiday.
Approval workflow: who reviews, approves and exports payout data.
Payment timing: payroll month and cut off dates.

Sample wording

Eligibility: Employees may be eligible for a bonus only if they meet the active employment, performance and plan participation requirements stated in the applicable bonus plan.

Approval: Bonus payouts must be reviewed by the employee manager, HR and finance before payroll submission.

Trust note

This is a planning template, not legal advice. Have employment counsel review any policy before publishing it to employees.

Related tools and next steps