Perk vs. Bonus — What's the Difference?
By Tayyaba Rehman & Maham Liaqat — Updated on March 17, 2024
Perks are non-wage benefits provided to employees, while bonuses are extra financial compensation for exceptional performance.
Difference Between Perk and Bonus
Table of Contents
ADVERTISEMENT
Key Differences
Perks, short for perquisites, are additional benefits offered to employees on top of their regular salary. These benefits are designed to improve employees' overall job satisfaction and can include health insurance, flexible working hours, and company cars. Bonuses, on the other hand, are financial rewards given to employees for their work performance, often reflecting the company's appreciation for meeting or exceeding specific targets or for exceptional service.
While perks are usually provided consistently as part of an employment package and aim to foster a positive work environment and retain employees, bonuses are typically performance-based and may vary from year to year or even be a one-time payment. Bonuses are directly tied to an employee's or company's achievement of specific goals.
Perks can also serve as a tool for companies to differentiate themselves in a competitive job market, attracting top talent by offering unique or highly valued benefits. Bonuses, however, are a more direct form of motivation, encouraging employees to achieve high performance and contribute to the company's success.
Some perks, like remote work options or flexible schedules, do not have a direct financial value but significantly impact employees' work-life balance and satisfaction. Bonuses are quantifiable and provide immediate financial gratification, directly affecting an employee's income.
In terms of tax implications, perks may sometimes be taxed differently depending on their nature and the tax laws of a country. Bonuses are generally considered additional income and are taxed accordingly.
ADVERTISEMENT
Comparison Chart
Definition
Non-wage benefits offered to employees
Extra financial compensation for exceptional performance
Purpose
Improve job satisfaction, attract and retain talent
Motivate high performance, reward achievements
Consistency
Typically consistent, part of employment package
Performance-based, can vary
Nature
Can be non-monetary (e.g., flexible hours, office amenities)
Monetary
Impact
Enhances work environment, may not directly impact income
Directly increases income
Compare with Definitions
Perk
A common benefit that covers medical expenses.
The company's health insurance perk includes dental and vision coverage.
Bonus
Extra pay for meeting or exceeding job performance targets.
My annual performance bonus is a significant motivator for me.
Perk
Free or discounted access to a gym or fitness center.
The free gym membership is a great perk for staying fit without extra cost.
Bonus
A reward for referring a job candidate who gets hired.
I received a referral bonus for introducing a friend who was a perfect fit for the open position.
Perk
Allows employees to vary their start and end times.
Flexible working hours let me drop my kids off at school.
Bonus
A one-time payment to new employees as an incentive to join the company.
The sign-on bonus helped cover my moving expenses when I relocated for the job.
Perk
A vehicle provided by the employer for personal and professional use.
Having a company car saves me a lot on commuting costs.
Bonus
Extra pay given around holidays as a token of appreciation.
The holiday bonus always comes in handy for Christmas shopping.
Perk
The ability to work remotely, either full-time or part-time.
The option to work from home has improved my work-life balance significantly.
Bonus
A share of the company's profits distributed among employees.
The profit-sharing bonus reflects our collective success as a team.
Perk
Become or make more cheerful, lively, or interesting
The coffee had perked him up long enough to tackle the reviews
She'd been depressed, but she seemed to perk up last week
Bonus
Something given or paid in addition to what is usual or expected.
Perk
(with reference to coffee) percolate
She showed us how to perk the coffee
While the coffee perks, head out for the morning paper
Bonus
A sum of money or an equivalent given to an employee in addition to the employee's usual compensation.
Perk
A benefit to which one is entitled because of one's job
Many agencies are helping to keep personnel at their jobs by providing perks
Bonus
A sum of money in addition to salary that is given to a professional athlete for signing up with a team.
Perk
A coffee percolator
Leo hooked up an extension cord for me so I can use my perk
Bonus
A subsidy from a government to an industry.
Perk
To stick up or jut out
Dogs' ears that perk.
Bonus
A sum of money paid by a government to a war veteran.
Perk
To carry oneself in a lively and jaunty manner.
Bonus
A premium, as of stock, that is given by a corporation to another party, such as a purchaser of its securities.
Perk
To cause to stick up quickly
The dog perked its ears at the noise.
Bonus
A sum of money that is paid by a corporation in excess of interest or royalties charged for the granting of a privilege or a loan to that corporation.
Perk
To percolate
The coffee was perking on the stove.
Bonus
(Basketball) An additional free throw awarded to a player who has been fouled when the opposing team has committed more than a specified number of fouls during a period of play.
Perk
Perky.
Bonus
Something extra that is good; an added benefit.
Perk
A perquisite.
Bonus
An extra sum given as a premium, e.g. to an employee or to a shareholder.
The employee of the week receives a bonus for his excellent work.
Perk
(informal) Perquisite.
Free coffee is one of the perks of the job.
Bonus
(video games) An addition to the player's score based on performance, e.g. for time remaining.
Perk
(video games) A bonus ability that a player character can acquire; a permanent power-up.
Bonus
(basketball) One or more free throws awarded to a team when the opposing team has accumulated enough fouls.
Perk
A percolator, particularly of coffee.
Bonus
(transitive) To pay a bonus, premium
Perk
To make (coffee) in a percolator or a drip coffeemaker.
I’ll perk some coffee.
Bonus
A premium given for a loan, or for a charter or other privilege granted to a company; as the bank paid a bonus for its charter.
Perk
Of coffee: to be produced by heated water seeping (“percolating”) through coffee grounds.
The coffee is perking.
Bonus
An extra dividend to the shareholders of a joint stock company, out of accumulated profits.
Perk
(transitive) To make trim or smart; to straighten up; to erect; to make a jaunty or saucy display of.
Bonus
Money paid in addition to a stated compensation.
Perk
(intransitive) To appear from below or behind something, emerge, pop up, poke out.
Bonus
Anything that tends to arouse;
His approval was an added fillip
Perk
To exalt oneself; to bear oneself loftily.
Bonus
An additional payment (or other remuneration) to employees as a means of increasing output
Perk
(dated) To peer; to look inquisitively.
Perk
(obsolete) To perch.
Perk
(obsolete) Smart; trim; spruce; jaunty; vain.
Perk
To make trim or smart; to straighten up; to erect; to make a jaunty or saucy display of; as, to perk the ears; to perk up one's head.
Perk
To exalt one's self; to bear one's self loftily.
Perk
To peer; to look inquisitively.
Perk
Smart; trim; spruce; jaunty; vain.
Perk
An incidental benefit awarded for certain types of employment (especially if it is regarded as a right);
A limousine is one of the fringe benefits of the job
Perk
Gain or regain energy;
I picked up after a nap
Common Curiosities
Do perks have monetary value?
Some do (e.g., gym memberships), while others (e.g., flexible hours) provide value in other ways.
Are bonuses always cash payments?
Primarily, yes, but some companies might offer non-cash rewards, such as stock options or gifts, as bonuses.
What happens to my perks if I leave the company?
Most perks cease upon termination of employment, though some benefits may extend for a period.
Can a bonus be guaranteed as part of my salary?
Bonuses are typically contingent on performance and not guaranteed, unlike base salary.
Are all employees eligible for perks?
Eligibility can vary by company policy and position, but many perks are designed to be company-wide.
Can perks replace a higher salary?
While perks add value to an employment package, they are usually not considered a direct substitute for salary.
Is it common for all industries to offer bonuses?
The prevalence of bonuses can vary by industry, company size, and financial performance.
How often are bonuses paid?
It depends on the company's policy; some are annual, while others could be quarterly or tied to specific achievements.
How do companies decide on the perks to offer?
Decisions are often based on company culture, the nature of the work, employee feedback, and industry standards.
Can the value of a bonus change from year to year?
Yes, since bonuses are often tied to performance, their value can fluctuate based on individual or company success.
Share Your Discovery
Previous Comparison
Boll vs. Coll
Next Comparison
Mosquito vs. MidgeAuthor Spotlight
Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
Co-written by
Maham Liaqat
