Definition
This item refers to monthly or more frequently granted bonuses under contractual arrangements and relates to work performed or to current output e.g. productivity bonus for piece-rate workers whose outputs exceeded the daily quotas. It should be distinguished from 13th month pay, year-end seasonal and similar one-time payments, which inquires on less frequently granted bonuses and gratuities.
Direct Wages and Salaries: cash payments by employer to employees before any deductions is made in respect of taxes, contributions of employees to social security and pension schemes, life insurance premiums, union dues and other obligations of employees; these exclude payments/overhead costs which are reimbursements to employees for travel, entertainment, meals and other expenses incurred in conducting the business of the employer.