Should you wait for your bonus before changing jobs?
As the year draws to a close, many professionals who are thinking about a move face the same question. Is it worth waiting until the bonus is paid?
For some, the bonus is a meaningful part of their annual income, and walking away from it is a real cost. For others, waiting means missing a role that may not be there in a few months. There is no single right answer, but there is a sensible way to work through it.
This guide covers what to check, what to weigh up and how to approach the conversation with a new employer.
Start with your actual terms
Before anything else, find out exactly how your bonus works. Assumptions are where most timing mistakes start.
Contractual or discretionary. A contractual bonus is part of your agreed terms. A discretionary bonus depends on a decision by the company, even if it has been paid every year.
Eligibility conditions. Many bonus schemes require you to be employed on a specific date, and some also require that you are not serving notice at that point.
Pro-rating. Some schemes pay a proportion if you leave during the year. Many do not.
Annual wage supplements. In some markets, including Singapore, many employers pay an annual wage supplement, often called a 13th month. Whether it is guaranteed depends on your contract.
Deferred or clawback terms. Some bonuses are paid over several years, or must be repaid if you leave within a set period after receiving them.
Your employment contract, the bonus plan rules and your company's policies are the place to start. If anything is unclear, ask HR before you make plans around it.
Terms differ between companies and countries, so it is worth checking your own situation rather than relying on what is typical.
Put a realistic number on it
A target bonus and the bonus you are likely to receive are not always the same. Company
performance, your own rating and previous payouts all give a better indication than the headline figure. It also helps to think in terms of the amount you would actually receive after tax.
Once you have a realistic number, you can weigh it properly against what a new role offers.
Consider the cost of waiting
Waiting is not free. A role that is open now may be filled by the time your bonus is paid. Senior hiring processes can take several weeks, so a decision to wait for a payment in March may mean not starting anywhere new until much later in the year.
It is also worth remembering that you will not be the only person waiting. Many professionals start looking once bonuses have been paid, which can make the early part of the year more competitive.
What a new employer may be able to do
If you are offered a role and would lose a bonus by moving, it is reasonable to raise it. Depending on the company and the role, a new employer may consider:
A sign-on payment or buyout to offset what you would lose
A start date that allows you to receive the payment first
A guaranteed or pro-rated bonus for your first year
None of these is guaranteed. They are part of a negotiation, and employers will usually expect evidence, such as your bonus plan or previous payslips. Raising the issue early in the process, rather than at offer stage, tends to make the conversation easier.
Timing your resignation
If you decide to wait, check how your notice period interacts with the payment date. In some schemes, handing in your notice before the bonus is paid means you are no longer eligible, even if you are still employed on the payment date.
Whatever you decide, do not resign until you have a written offer that you are ready to accept.
Questions to ask yourself
Is my bonus contractual or discretionary, and what are the eligibility conditions?
What am I realistically likely to receive, after tax?
Would waiting mean missing this opportunity?
Is the new employer willing to discuss a buyout, start date or first year bonus?
How does my notice period interact with the payment date?
Conclusion
A bonus matters, but it is one factor among several. The best timing decisions are made deliberately, with the real numbers and terms in front of you, rather than by default. If the role is the right one, it is usually possible to find an approach that does not leave you significantly worse off.
This article is general guidance and does not constitute legal, tax or financial advice. Bonus terms and employment rules vary by employer and jurisdiction.
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