Bono de firma

What is a signing bonus?

A signing bonus is a one-time cash amount offered to a new employee when signing an employment contract. It's a supplement to salary, intended to incentivize the candidate to choose the offer. Typical amounts are 5-20% of annual salary, but can be much higher for highly qualified specialists.

Taxation of the bonus

A signing bonus is treated as employment income and is subject to standard taxation and social security contributions. In the US, it's included in regular income and taxed at progressive rates. In Poland, it's included in the tax base in the year received. If you leave before the required period, you may have to repay part or all of the bonus.

Negotiating the bonus

Don't be afraid to negotiate. Before the conversation, research market rates for your position and location. During negotiations, present your achievements and unique qualifications. If you have other offers, mention them (without revealing specific amounts). Remember that the bonus can be negotiated independently of base salary.

Amortization and risk

If you plan to leave early, amortization reduces the bonus value per year. With a 20000 bonus and expected 2 years, that's 8000 per year but after tax much less. If you leave after one year, you actually received only half. Always read the contract and check repayment terms before signing.