FREE TEMPLATE · HR LETTERS

Bonus letter template

Confirm a year-end or performance bonus in writing: the amount, what it is for, when it will be paid, and a personal thank-you that says what the bonus recognises.

The details

CompanyEmployee’s full nameTheir job titleSigned bySigner’s job titleLetter date

This letter

Type of bonusBonus amountFor the periodPayment dateWhat it recognises (one per line)Conditions (optional)

[Company]
13 November 2026

Private and confidential
[Employee name]

Dear [Employee,

Performance bonus

I am pleased to let you know that you will receive a performance bonus of [amount] for [period]. It will be paid with your salary on [date], subject to the usual deductions.

Bonuses are reviewed each year and depend on company and individual performance, so this payment does not set an amount for future years.

Thank you for everything you have contributed this year.

Yours sincerely,

[Name]
[Job title]
[Company]

! Still to fill in: Company, Employee’s full name, Their job title, Signed by, Signer’s job title, Bonus amount, For the period, Payment date.
! Add one or two things the bonus recognises. A specific thank-you means more than the number alone.
! Add the payment date so there is no uncertainty.

Before you send it

Tell the person in a conversation first, then send the letter. Never let the payslip be the first they hear of it.
Explain how the amount was decided, especially if it is lower than last year.
In Singapore, bonuses and the AWS count as Additional Wages for CPF. In Malaysia, bonuses count as wages for EPF.
Keep bonus letters private and send them directly to each person.

A starting point, not legal advice. Check your contracts and company policy, and ask HR or a lawyer if you are unsure.

THE GUIDE

Telling someone about their bonus

Tell them in person first, say what the bonus recognises, explain how the amount was decided, then confirm it in writing.

What to say

The amount and when it will be paid.
One or two specific things it recognises, from their year.
How the amount was decided: company results, their rating, the team pool.
If it is lower than last year, say so plainly and explain why before they see the payslip.

Frequently asked questions

Is a bonus the same as the AWS?

No. In Singapore the annual wage supplement (13th month) is usually a fixed contractual payment, while a bonus depends on performance. The letter covers both; pick the type in the form.

Does a bonus count for CPF or EPF?