When Is A Signing Bonus Paid?- Know More About It


In the world of working and jobs, there is a lot that goes around. There is much that we are unaware of. Many aspects that can help us plan and search better are still uncommon. Understanding how to smartly look for jobs as per our requirements is the right way to go. A lot comes into play namely the platform you choose, the company, and the job itself. Working hours, as well as the pay, are also taken into consideration. However, there are many other factors to look at like bonuses and incentives. In this article, we will see about ‘When Is A Signing Bonus Paid?’.

When Is A Signing Bonus Paid?

When Is A Signing Bonus Paid?

Signing bonus 

When we think of the term bonus, we remember those which we receive for holidays or at the end of the month. Some may be related to the performance itself. Secondly, when we think of incentives, even then we look at it during our tenure with the company. However, there is something called a signing bonus that is offered under certain conditions. What it is, who gives them and why? All that you need to know is right here in this article. Let’s read When Is A Signing Bonus Paid.

What is a signing bonus?

As the term suggests, a signing bonus is given for signing in. basically for signing the offer letter to a company. When you apply for a job and further complete the procedure and are hired, after completing all formalities, certain companies offer a signing bonus. It is not a common concept so many are unaware of this term. The sum also can vary at many lengths depending on various factors. The company, the position, and so on decide the signing bonus. 

Why is it given?

Generally signing bonuses are given to highly qualified applicants. If you’re an intern or a fresher, the chances are low. Again, whom the company chooses to give a signing bonus also depends on the factors mentioned below:

1. To attract potential candidates

You’ll notice this if you already have experience in the working drill. If you’re applying for the position of a manager or supervisor or other high positions, you will likely be offered a signing bonus. companies want to keep up with the competition. They want the best for their company. As opportunities increase, they have to up their game. Therefore, they use signing bonuses to increase the probability of applications. 

2. In cases of urgency 

When there are sudden resignations or if an important or busy position is vacant, the company is in need to fill it up. In such cases, they will increase their applications with the idea of a signing bonus. This will fasten the process of hiring an applicant. It’s only natural that when you see a signing bonus is offered, you’ll give preference to the company. 

3. Too many vacant positions 

Generally, newer or smaller positions are largely left vacant. This is because the company’s prime focus is the higher positions. Also in cases where the office shifts and people resign, a lot of slots open up. To avoid delays, signing bonuses are mentioned to increase the scope for applicants. The work needs to be done and people need to be hired. Therefore, the company wouldn’t mind spending to quickly recruit employees. 

4. As an incentive

Companies often have policies themselves. As simple as that. It may be a common incentive for every employee of the company. Some companies cannot offer the same incentives and benefits as others. Furthermore, their incentives may not be as attractive as those of other companies. Hence, they include a small amount as a signing bonus as a quicker incentive for applicants ensuring their applications. 

5. To make up in the future

There may be differences in salaries when you’re applying for positions in a job due to qualifications, skills, etc. If you realize you’ll receive a lower salary or if the company itself decides to give you a lower salary, a signing bonus comes into the picture. They mention the same to you and use the idea of a signing bonus to make up for the gap in the first year. This again increases the chances of approving the job over the lower pay that is bound to be turned down. 

6. Specialised positions 

Designers, developers and so on that have special or rare duties assigned to a company are usually given a signing bonus. This is because it is hard to find experts who are willing to work in the company. The applicants for such positions get various attractive offers as this position is limited and specific. Therefore, to form an attention-drawing offer and position, a signing bonus is added along with other incentives. 

Terms and conditions

Yet again, there are different ways that the company may follow to pay your bonus. One has to understand that there are a set of terms and conditions that come about the signing bonus. Make sure you read these well before you say yes or you’re in for a fall. Companies will act as per the terms and conditions while paying your signing bonus. The amount paid can vary depending on your job, the company, and position. It is generally between 1000$ to 30,000$ but this can increase or decrease. It’s all in your terms and conditions so you want to take a good look at it. 

When and how is it paid? 

You’re probably curious to know when the bonus is paid. When it comes in your hands is what counts. You have to be very careful to understand how your bonus will be paid. It’s not that you come in and get the payment first thing in your hand. Not even after you sign the letter. There is a format followed. 

On a general basis, most companies pay off the signing bonus 30 days, i.e. a month after you have worked with the company. This is because they want to test your ability. Another reason is that the period seems sufficient to verify your documents and CV and so on. On your part too, in 30 days, you’ll get the hang of the job and its terms and policies and have a better idea about it. It has to be a done deal from both sides before they can pay you. Along with your first salary is when you commonly receive your signing bonus. 

Coming to how it is paid, there are many ways. This too depends on your terms and conditions as well as the company. The two common methods followed are mentioned below:

1. One-time payment 

If the company says that your signing bonus will be paid after 30 days in full, you’ll probably receive a paycheck additional to your salary and that is it. It may also be added to your salary. The complete payment is done here and there and that’s all about it. This is a better method for applicants since they can avoid having to constantly keep a check. 

2. Installments or multiple payments 

Another common method companies use is paying in installments. Even though the term given is after 30 days, you will receive a part of the signing bonus after 30 days. The rest is eventually paid after regular intervals of time. Companies break the total amount into smaller portions and add that to your monthly salary after the first 30 days. They continue to pay till the said amount is given and then on, your regular salary follows. 


Now we have learnt ‘When Is A Signing Bonus Paid?’, Signing bonuses can be a treat provided you understand them. Some companies truly make it an incentive while others may use it as a balance to make up for other flaws. One has to consider the pros and cons before negotiating on a signing bonus. Additionally, don’t forget the terms and conditions! 


  • Do you get a signing bonus as soon as you work?

A signing bonus is always given after a period of a few working days. It is highly unlikely that it will be given as soon as you begin working as the company wants to check and verify a lot about you. Furthermore, the terms and conditions will specify when and how your bonus will be given.

  • Is a signing bonus deducted from your salary?

Often not. Bonus in itself refers to an addition to your said salary. The whole concept is meant to be added to your prevalent salary. However, although it may not be deducted straight from your salary, it could be indirect. For instance, the company may offer a signing bonus to make up for a fixed lower salary due to several factors.

  • Is it ideal to choose a job that offers a signing bonus? 

In many cases, yes. If you’re getting paid to just say yes, why not! However, there is always more to it. Whether or not it is advisable can be made out through the terms and conditions. These clearly state why and how you will be given a signing bonus. It also mentions whether this bonus will affect your future payments. To decide whether it’s ideal or not, reading the terms and conditions is the right way to go!

When Is A Signing Bonus Paid?- Know More About It

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