A Joining Bonus or sign-on bonus is a sum of money paid to a new employee by a company as an incentive to join that company. At times, companies would like to compensate the Notice Pay to be paid to the previous employer in order to take the employee on board immediately. As per trend in India, joining bonus is estimated to be in the range of 10 to 20 per cent of the employee’s Cost to Company (CTC).
The trend of joining bonus is more seen in sectors such as BFSI (Banking, Financial Services and Insurance), IT, Services, Power, Energy and Infrastructure.