A year-end bonus is a financial reward given to employees at the end of the fiscal year, typically based on the company's performance. This bonus can vary in amount and is often a percentage of the employee's salary or a fixed sum. It serves as an incentive for employees to work hard and contribute to the company's success. Companies may use year-end bonuses to boost employee morale and retention. These bonuses can also be tied to individual performance, encouraging employees to meet or exceed their goals. Overall, they are a common practice in many industries to reward and motivate staff.