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[BUSINESS] · Germany · 3 sources

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Salary increases vs. bonuses: Long-term financial impact

When negotiating compensation, a permanent salary increase may offer greater long-term financial benefits than a one-time bonus. While a bonus provides immediate cash, a base salary increase establishes a higher foundation for future earnings.

For example, a monthly gross salary increase of 100 euros results in 1,200 euros of additional annual income. Over five years, this totals 6,000 euros, and over ten years, it reaches 12,000 euros gross, excluding any subsequent raises based on the new higher base.

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Fortunalista · Margarethe Honisch

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