How To Write a Bonus Letter (With Sample)

Any employee working for the company, regardless of his or her title, level, or grade, receives an annual bonus letter. When calculating the amount to be distributed as an annual bonus, the company uses a bonus calculation formula that it created. It is also referred to as a “performance bonus,” which is essentially a bonus given to employees at the end of the year based on their performance both as an individual and as a business. Employees receive a letter expressing their appreciation for their efforts throughout the year in the form of a year-end bonus.

Bonus Letters – Wilson 1.4

How does a bonus letter affect an employee?

A bonus letter notifies a worker that they will soon receive a bonus and gives them information about the sum and the timing of the payment so they can plan ahead. Additionally, it provides them with the chance to voice any queries or worries they may have regarding the bonus. A personal letter can also make a team member feel appreciated, which might motivate them to keep producing high-quality results.

What is a bonus letter?

An official letter that you can send to someone to inform them that they are eligible for a bonus and to congratulate or thank them for their work is known as a bonus letter. Additional details about the bonus, such as its amount, its justification, and when the recipient can anticipate receiving payment, are typically included in the letter. You can use bonus letters to let team members know about bonuses for individual accomplishments or staff-wide bonuses.

How to write a bonus letter

Here are some ideas to bear in mind as you write a letter informing someone of a bonus:

1. Address the letter

Label and address the letter as you would any other correspondence with your team at the beginning. Consider starting with your name, your position and the date. Next, include a salutation and the name of the recipient of the bonus.

2. Announce the bonus

Immediately after you’ve addressed the recipient, try to explain why you’re writing them a letter. Tell them they’re getting a bonus and explain briefly why. For instance, if this bonus is for a specific accomplishment, you can describe the specific project or action.

3. Give details

You can go into more detail about the bonus in the paragraph after this. For instance, if the bonus is company-wide due to strong profits, you can include information about the amount of money the charity raised that year. Try to also mention the percentage of their pay or the exact amount they are receiving, as well as when they can anticipate the bonus. Since bonus letters are frequently brief, you only need to provide a few essential details.

4. Congratulate them

A bonus letter’s secondary purpose is to express gratitude to the recipient for their diligent work. Consider congratulating them on their accomplishment or thanking them for their performance that earned them a bonus after going into more detail. This demonstrates your appreciation for the team member and might encourage them to keep up their diligent work.

5. End the letter

You can begin and end the letter after thanking your team member. Mention how much you appreciate the recipient’s work and consider saying “thank you” again. Then finish with a professional salutation and your name. If you’d like, you can also provide your contact details and say that they can get in touch with you if they have any other questions.

Tips for writing a bonus letter

Here are some ideas for using in your bonus letter writing:

Use a simple tone

Despite the fact that a bonus letter is an official business document, you don’t have to sound formal. Bonus letters frequently adopt a straightforward tone and more informal language compared to other professional letters. When writing your own bonus letter, keep the tone informal but direct.

Keep it brief

Bonus letters are intended to quickly acknowledge a team member’s accomplishment and inform them that they are eligible for a bonus. This means that these letters are usually short and informative. Try to keep the content of a bonus letter succinct and pertinent to the bonus announcement. Most bonus letters are only around 2-3 paragraphs long.

Consider a template

When writing a bonus letter, a template can assist you in maintaining a consistent tone and organizing your thoughts. When writing your letter, think about using a template, especially if you’re writing several bonus letters at once. You can look up a bonus letter template online or ask your boss if they have a specific template you can use.

Start with the important information

The primary function of a bonus letter is to notify a recipient that they have been awarded a bonus by their employer. As a result, try to include the bonus as early as possible in the letter. The bonus is typically mentioned in the first sentence of bonus letters, but it may also appear elsewhere in the opening paragraph.

Include a way to respond

After reading their bonus letter, a person might have further inquiries about getting their bonus that the letter may not address. Include contact details, like a phone number or email address, as well as an invitation to speak with you if they need more information to help with these inquiries. This will enable you to respond to any queries or worries your team member may have regarding their bonus.

Bonus letter sample

To help you write your own bonus letter, here is an example that you can use:

Geraldine Falkner

Head of Marketing, SouperSoup Club


Dear Hannah Grant,

I’m writing to let you know that your recent efforts have made you eligible for an achievement bonus. Your contribution to the recent television commercial for SouperSoup Clubs, which raised our business’ profits by 5%, is reflected in this bonus. We are giving you a bonus equal to 5% of your salary in recognition of your contributions.

This bonus will be deposited into your bank account as a direct deposit by 5 p.m. m. this Friday. I want to thank you for your dedication to this project. Your clever ideas and catchy tagline are crucial to the success of this advertisement.

Thank you once more for your work on this particular project. If you have any questions, please email me at Gfalkner@soupersoupclub. com.


Geraldine Falkner


How do I write a letter of bonus?

How to write a bonus letter
  1. Address the letter. Label and address the letter as you would any other correspondence with your team at the beginning.
  2. Announce the bonus. …
  3. Give details. …
  4. Congratulate them. …
  5. End the letter. …
  6. Use a simple tone. …
  7. Keep it brief. …
  8. Consider a template.

How do you announce a bonus to staff?

I am happy to report that the numbers are in for [year], and we have not only met but exceeded all of our goals for sales and customer service. To: All Employees or Dear [Name of Employee]: I would like to personally congratulate each and every one of you on this accomplishment.

How do you tell someone they are getting a bonus?

Ten ways to tell someone they’ve got a bad bonus
  1. 1) Don’t let others do your dirty work. Newsletter sign up.
  2. 2) Use appraisals to your advantage. …
  3. 3) Keep consistent. …
  4. 4) Get it done early. …
  5. 5) But don’t rush. …
  6. 6) Make it personal. …
  7. 7) Talk around the bonus. …
  8. 8) Encourage feedback.

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