A bonus system can be considered as an incentive or a reward mechanism that is used by employers to motivate and retain their employees. Examples of synonyms for the word "bonus system" are profit-sharing, performance-based compensation, variable pay, merit-based bonuses, and commission-based pay. Profit-sharing involves distributing a portion of the company's net income to the employees based on their contribution to the business's success. Performance-based compensation can be in the form of bonuses or commissions given to employees who exceed their set targets. Variable pay includes different forms of bonuses, such as referral bonuses, sign-on bonuses, retention bonuses, and sales-based bonuses. Merit-based bonuses are given to employees who demonstrate exceptional performance, while commission-based pay is given to sales agents based on the number of sales they make.