A holiday bonus is an extra payment given to employees by their employers during the holiday season. This bonus is often provided as a gesture of appreciation for hard work throughout the year and can vary in amount. Some companies may offer a fixed sum, while others might base it on individual performance or company profits. Typically, holiday bonuses are distributed in December, aligning with major holidays like Christmas and New Year. They can help employees manage holiday expenses, such as gifts and travel. While not mandatory, many businesses view holiday bonuses as a way to boost morale and foster loyalty among their staff.