Often, in order to incentivize its employees, the employer pays not only the salary due to the employee, but also other monies in the form of a bonus or material incentive. In addition, the state obliged managers to pay special bonuses to employees if the opportunity arises. What is the difference between allowances and surcharges, you ask? It is necessary to cover this issue in more detail.
Surcharge represents a payment of a compensatory nature, since it is assigned in the case when the employee was in a state of increased labor intensity, for example, worked on holidays and weekends, on evening shifts, or combined his activities with the work of another employee.
A bonus is characterized as a payment to an employee when the employer seeks to stimulate a person for further personal growth and development. The allowance is paid, for example, for continuity of work, any degree or length of service.
Although these two characteristics have a common purpose - to increase the employee's salary, their goals are somewhat different.
So, if an employee performs duties that are not provided for by an employment contract, for example, combining several positions, or works overtime (on holidays or weekends, in the evening or at night), then, according to the law, the employer is obliged to do him an additional payment of funds, thereby compensating for the time spent or the complexity of the work. Also, an additional payment must be made if the employee works in harmful or dangerous conditions, or if the employer decided to transfer the employee to a lower-paid position.
The bonus is paid when the employer wishes to celebrate the achievements of his employee (knowledge of a foreign language, high level of qualifications, professional skill) and stimulate him to further actions. The allowances are optional and provide for discretion on the part of the manager.
- Additional payment is obligatory, additional payment is not.
- The supplement is of a compensatory nature, and the premium is of a stimulating nature.
- With a premium, the employer seeks to emphasize the value of his employee, and with an additional payment he compensates for the intensity of production and difficult working conditions.