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Bonus Letter

Bonus letter is a letter bringing good news about Bonus given to an employee by an organization in acknowledgement to her/his efforts or initiatives but the bonus definitely commensurate with the hierarchical level that the individual is at.

The bonus payout however may vary from company to company, in the sense some companies may have a bonus payout every quarter but for every month. And for some companies it may be paid bi-yearly or yearly.

A Bonus Letter is an official letter given by an organization to its employee informing her/him of the bonus s/he is due with certain other details such as when will the payout happen, etc. It is an important letter not only from the perspective of information to the employee about the bonus details but is also very useful when the employee’s increments are worked upon later.

Points to be kept in mind while writing a Bonus Letter are:

  • It should always be on the company’s letter head to give it that formal official effect
  • It should have the complete name of the employee for whom it is meant. There could be two employees with the same initials
  • It should highlight the reason for which the bonus is being released
  • The Bonus Letter should indicate the exact amount of payout and the month in which it will be given
  • It should be a motivational letter to ensure that the employee keeps thriving to achieve more
  • A copy of that letter should be put up on the staff notice board so that other employees are aware of ‘the employee’ and they too are motivated to give similar achievements
  • A copy of the letter also needs to go into the employees’ personal file for all future references by existing and forthcoming superiors

Sample Bonus Letter


Dear Ms./Mr. ______________

(Designation of employee)


Subject: Bonus payout for quarter ending

Dear Ms./Mr. _____________

It is the quarterly bonus payout time, a time that everyone eagerly looks forward to.

Congratulations! You will be pleased to know that your rating for the quarter ending was _________ (specify the rating as per the company criteria). Therefore the payout due to you basis that rating is Rs.______.

The details are attached for your reference to enable you to understand the calculations. You are most welcome to contact the HR department to seek for any clarifications.

We hope to see more of such ratings from you and wish you all the best for all your efforts with us.

Best wishes

(Name and designation of the signing authority)

So you go that extra mile and it pays……..what more can one ask for?

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