Commission and Bonus – The Legal Distinction Every Employer Needs to Know

Commissions and bonuses are two accepted mechanisms for rewarding employees. Both are perceived by employees as additions to their salary, but legally speaking, they are entirely different components in terms of their impact on the calculation of an employee's social rights. What is a commission? A commission is a payment for performing a specific task – usually a fixed percentage of a sale, profit, or income that the employee actually generated (e.g. ...

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