Year‑end bonuses: What employers need to know

As the year draws to a close, questions around year-end bonuses arise. In South Africa, the law does not prescribe a general legal obligation on employers to pay a bonus. As always, whether a bonus must be paid, how it is calculated and when it may be withheld, could depend on many factors, including the source of the right and, if discretionary, the manner in which such discretion is exercised.

17 Nov 2025 1 min read Employment Law Alert Article

At a glance

Year-end bonuses are not a statutory entitlement. They arise from contractual provisions or employer discretion under a bonus scheme.
Guaranteed payments, such as a thirteenth cheque, must be honoured in accordance with the terms of any agreement to this effect. For discretionary bonuses, employers must exercise discretion fairly.
Ultimately, clarity and consistency are paramount for managing expectations, mitigating legal risks, and upholding fair practices.

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