There are a lot of preparations and expenses waiting for us in the pre-Christmas period. Gifts, cleaning, cooking, decorating the apartment… There’s still a lot of work ahead of us! On the occasion of Christmas, many employers decide to support the employee financially. Christmas bonus for employee- what are the rules? You will find the answer later in the article.
Christmas bonus – employer’s debt or goodwill?
The Christmas bonus is a form of financial support for an employee during the Easter or Christmas period. At the outset, it is worth noting that the payment of the Christmas bonus is not the employer’s obligation and depends solely on his good will. The Labor Code does not provide any arrangements on this topic. Despite the fact that it is a completely voluntary gesture, the Christmas bonus has become the norm – both in large corporations and small enterprises.
Important! If your employment contract or internal regulations contain a provision about the Christmas bonus and the rules for its payment – it means that you should receive it, just like any other employee in the company.
In public institutions and all state-funded enterprises, the payment of the Christmas bonus has become a tradition. The same goes for thriving corporations. By the way, it all depends on the budget of the company where you work. If the employer has sufficient funds, he will be able to reward his employees.
The Labor Code does not specify how much you must work to receive the Christmas bonus. A new employee, employed in the company for a few months, for example, may receive a discretionary allowance – everything is in the hands of the employer.
What are the types of holiday bonuses?
The Christmas bonus can come in many forms. It all depends on the company’s budget and the employer’s idea. The most common is, of course, a cash bonus. Companies, especially the larger ones, often opt for Christmas vouchers or gift cards. This is a good solution when you employ many people, because it would be impossible to personalize a gift for each employee. And each of them will use such a voucher at their discretion. It is also common practice to prepare gift baskets with sweets. It is a symbolic gift to reward employees for their hard work.
An act of appreciation for the work of subordinates can also be the organization of an employee Christmas Eve. This is a great opportunity to celebrate and strengthen the bonds between employees and superiors.
What is the method of financing and taxation of Christmas bonus?
We can list two main sources of funding for Christmas bonuses:
- from the company’s revenue
- from the Company Social Benefits Fund (in this case, the amount of the Christmas bonus is determined individually, taking into account the financial and family situation of the employee)
The Company Social Fund is mandatory for companies that employ at least 50 full-time employees. This applies to all private enterprises.
The Christmas bonus is treated as additional employee income, which is also subject to taxation. Private companies with less than a maximum of 50 employees are required to file taxes on any Christmas bonus. In turn, companies subject to the ZŚF can count on covering the costs related to Christmas bonuses.
Gift vouchers and gift baskets are also taxable.
What is the purpose of paying the Christmas bonus?
The holiday season is a magical time when human kindness counts. With the end of the year, we are inclined to reflect and make summaries. We experience the same at work – we complete all projects and carry out analyses. The employer then has a unique opportunity to thank the employees for another year of cooperation.
The Christmas bonus is aimed at recognizing the hard work of employees and motivating them to keep going. A well-thought-out and fairly awarded Christmas bonus deepens employee loyalty.
However, it should be remembered that too little or no bonus may have negative consequences. The lack of a reward or its inadequate value in relation to the efforts and achievements of the employee can only arouse anger and frustration in him.
Currently, due to the ever-increasing inflation in Poland, many companies are going into decline. The result of this phenomenon may be the resignation from granting Christmas bonuses. The employer should immediately inform employees of this fact.
Employee benefits – What do employees care about?
