Can a bonus count as a salary increase?

Question

I am majorly underpaid compaired to industry standard. I am now eligible for a one off yearly company bonus. I really want a raise but he says that the bonus already is now. Is that fair? Can he really do that?

I am majorly underpaid compaired to industry standard. I am now eligible for a one off yearly company bonus. I really want a raise but he says that the bonus already is my salary increase. Is that fair? Can he really do that?

what do you mean by factory acts?

Since working with the company I have started doing much more senior work, more hours etc.. so I am definitely underpaid compared to other people who do my job..

Answer 1

A big disadvantage of these bonuses is also the fact that if you want to get another job... and you are in the middle of the year... you lose the bonus... looks like more and more company adapt this technique...it reduces theirs expenses... is not fair for the employees also... !

Answer 2

You are not automatically entitled to a pay rise but company's wanting to retain staff should try especially if their employees are below market standard. The bonus is different from the payrise as it does not count in the calculation of things like redundancy payments or your pension scheme if you are part of one so you are normally better off getting a payrise. Why not start looking elsewhere if you have experience and you know other places pay more. By the time you secure the other job hopefully you will have the bonus which means you can leave with the lump sum straight away. It is these circumstances when the bonus is better than the payrise.

Answer 3

Yes, a company can pay you anything you are willing to work for at or above minimum wage. The bonus is a way for them to give you an incentive without committing to ever doing it again. Although it is not your salary, you could count it if you left in the last year as part of your total compensation if you need to tell a new company what you made before.

Answer 4

I can only talk for UK employment law Mimi.
There is no right to a pay rise or bonus payment, so yes, they can do this. (Although you are right - a bonus payment is a one-off payment, a pay rise is something you would benefit from every year - so a pay rise is much better.)
What concerns me is that you state you have started working longer hours and doing more senior work. You should not be working above & beyond your contracted hours and you should not be working beyond your job description.
If your boss wants you to work extra hours, demand over-time payments.
Do not do any work that is not in your job description - you are not being paid to do this. If your boss wants you to do this, suggest a job (and salary) re-evaluation.
Make sure you are in a union and involve them - they should be able to negotiate a pay rise for all members much more effectively than you will be able to as an individual.

Answer 5

There is no legal requirement to pay you a bonus or increase your salary I'm afraid. So the company is quite within its rights to decided that your pay increase is a bonus instead of adding it to your annual salary. Its shouldn't make any difference though - you still get extra money right.

You know, if you really hate it, why not get a new job?

Answer 6

Bonus is nothing to do with annual pay raise.
Bonus is share of profit for each employee, in proportion to salary, once in a year or as the case may be.Bonus, is also considered as deferred wages (i.e., share of profit).
Annual Pay raise is to be effected every year, depending on your scale. Promotion and Pay Scale revision are Management discretion, you or any employee cant do a thing about it.

You may look for a 'CHANGE' or an Advocate.

Answer 7

Bonus is not a raise, although both are green backs. If you get a raise you get employer's contribution towards, SS, medicare (401K may be) etc. but if is a plain bonus you do not get these. You should try for a raise.

I am sorry to say, but your employer thinks you do not deserve any raise, therefore, he is not motivated to give a raise to you. Your best option is to look at your self and your productivity (Even office staff's productivity can be measured) and decide if you think you deserve a raise. Before that see if you are achieving your set (mutually) targets and if you are achieving them. Many small businesses, owner operated, may not have set targets, but that is not healthy for the enterprise and to the staff/workers. Motivate your boss to set targets for you and prove to her/him your worth, then a raise will be imminent. If not? Your employer doen't deserve you. Then if it is not your way then highway..good luck.

Answer 8

No. You are definetly being underpaid. A bonus is a one time bonus that supposely to "thank you" for your effort to make their business grow. Salary increase is base on your performance and is consider into your salary.

Answer 9

Bonus is nothing to do with pay raise. Bonus is profit share for each employee once in a year or as the case may be.Pay raise is to be effected every year. I think you can refer factory acts and learn more.

Answer 10

Bonus is deferred wages or part of shared profit.There is payment of bonus act,which is mandatory in many countries.Bonus is not substitute for annual raise.If you are appointed with pay scale with annual increment you must get it.If your contract is consolidated monthly remuneration ,you may not be elegible to get annual increment.Please verify your terms of appointment(appointment letter) or service agreement(contract) and then decide.