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Isn't this what bonuses were originally intended to be? Do better/more/higher quality work, get a reward?

I've never worked a job where "bonuses" were part of it and you got them at the end of the year regardless of what you had done, so I probably have a completely different view to people where "bonuses" are just a way around providing compensation without incurring tax. 'Yeah of course I get my yearly bonus, that's part of my salary package'.

[...] providing compensation without incurring tax.

In what country does this work? In the US, at least, bonuses are taxed as ordinary income. (They're included along with salary and tips in box 1 of the W-2 form that the employer files with the IRS.)