Financial benefits are an attractive source of money and are able to significantly augment the fixed component of one’s annual income. Employers use these benefits to motivate employees throughout the calendar year. Some of them also awarded an year-end bonus to thank them for their overall performance at the end of the fiscal year. It is important to remember that only some employers offer this form of financial benefits. It largely depends on the employer’s financial condition. Non-financial benefits are more prevalent in practice. The Paylab salary portal analysed the salaries and prevalence of financial benefits for individual positions.
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 decided to examine financial benefits in detail.
In general, financial benefits are in no way a given. 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. 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. Compare the salary conditions in your current job with others.
Christmas bonuses are the most generous in Central Europe
Christmas bonuses are especially welcome before Christmas shopping. These bonuses are a mandatory salary component agreed upon in an employment contract. Employers use to show workers appreciation and is usually ment as a gift. A majority are defined as a specific percentage of the basic salary and these extra funds are paid out with the salary for December before Christmas itself (13th salary).
Christmas bonuses are among the sample group most widespread in Croatia, where up to 44 per cent of employees receive such a bonus, but the actual amount of the bonus itself is not so high. Typically, the bonus is around 23 per cent of a Croat's basic salary, which is a gross bonus of around €185 on average. Christmas bonuses are also widespread in Slovenia, with a third of employees receiving one; the amount is a bit higher than in Croatia at roughly 31 per cent of the basic salary (€422 on average). In the Balkans, Christmas bonuses are a bit less common in Bosnia and Herzegovina (15 per cent) and Serbia at 8 per cent, but the percentages are much higher than in Croatia or Slovenia. In Bosnia, the Christmas bonus is 78 per cent of the basic salary (€625) while in Serbia it is up to 86 per cent of the basic salary (€481).
In Central Europe, Christmas bonuses are a bit less common, but the amount of the bonus itself is much more generous. People can certainly look forward to a bigger shopping bill when they receive a gross bonus of €720 to €850 on average (except Poland where the bonus is not so generous). 19 per cent of employees receive this bonus in Poland, 17 per cent in Slovakia, followed by 14 per cent in the Czech Republic and 13 per cent of employees in Hungary. Hungarians receive the most generous bonus from all countries at up to 91 per cent of their basic salary.
In the Baltics, 10 to 13 per cent of employees receive a Christmas bonus, while the amount does not exceed a fifth of their basic salary, i.e. a gross bonus of €173 to €210. In the Nordic countries, a Christmas bonus is the least common in Finland, with only 4 per cent of employees receiving one. The bonus itself typically does not exceed 21 per cent of a Fin's salary.
Year-end bonuses tend to be more generous than Christmas bonuses
Bonuses/commission are optional salary components that are largely understood as a profit-sharing bonus and are individually defined performed - based on achieving specific goals. 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. Gain an overview of salaries for your job in your region.
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. 21
to 45 per cent of people in top management report that they receive
year-end bonuses that often exceed twice their basic monthly salary. All
employees in this group work at the highest levels of management in various
companies, from small family-owned companies to large corporations. Year-end
bonuses are also common in low- and middle-management but are a bit more
modest. Read more which industries invest in year-end bonuses the most.
Among the monitored countries, year-end bonuses are most widespread in the countries of Central Europe, where around a quarter of employees receive an average bonus of 69 to 86 per cent of their basic salary. Croatia and Slovenia were the most modest countries among the sample group, with bonuses equal to around half of the basic monthly salary. These bonuses were least common in Serbia, where they are received by only a tenth of employees, but they were the most generous among the sample group, reaching 114 per cent of the basic salary on average (€645).
Regular bonuses are much more common in Finland despite the relative uncommonness of a Christmas bonus. Around 19 per cent of employees receive such a bonus at a level of 78 per cent of the basic salary (€2365).
Daniela Beráková, Communication & Content Manager for Paylab.com
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