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A bonus is defined as the extra money that an employee receives on top of their monthly salary. It could be the reward given to an employee for good performance. Sometimes all employees of a company are given extra money which could also be known as a bonus. For example, if you receive an additional payment at a festival like Diwali or year-end, it is a Diwali bonus or Year-end bonus.
A bonus represents an increase in employee compensation. However, A raise is also known as employee compensation. The difference between both of them is that a bonus is a one-time payment, while a raise represents a permanent change.
Also, See: Employee Referral
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