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Guaranteed bonus-which banks accept as part of salary?

  • 23-07-2022 8:05pm
    Registered Users Posts: 163 ✭✭

    Hi there,

    I get x amount guaranteed bonus per month. This is essentially in-lieu of health/pension as our company doesn't provide it.

    I am wondering which banks take this into account?

    I was told by BOI that they don't take into account bonuses at all, even though it is guaranteed.




  • Registered Users Posts: 470 ✭✭theboringfox

    Do not call it a bonus. It is basically an allowance of income that is just non pensionable. Bank should treat it as salary

  • Moderators, Business & Finance Moderators Posts: 9,274 Mod ✭✭✭✭Jim2007

    What does your employment contract say and how is it presented on your income statement?

  • Registered Users Posts: 3,127 ✭✭✭Markitron

    BOI definitely do, if you can prove you have received it over the last 2 years they should include it. They even included my health insurance contribution.

  • Registered Users Posts: 410 ✭✭Icantthinkof1

    BOI accepted ours asked for proof of bonus over past 3 years

  • Registered Users Posts: 100 ✭✭msdurden

    BOI definitely accepted my once per year bonus & they added it to my salary - same with my friend who got her mortgage with BOI this year.

    Maybe the broker you spoke to is a "100% by the book" type?

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  • Registered Users Posts: 129 ✭✭AySeeDoubleYeh

    Yeah BOI added mine as well - the bonus amount varies by year depending on company/individual performance so they just took the average of the past 3 years and added that to my basic.

  • Moderators, Society & Culture Moderators Posts: 32,274 Mod ✭✭✭✭The_Conductor

    Under Central Bank guidelines- lenders are not supposed to include any non-guaranteed income in their calculations of loan amounts (without exception).

    Bank of Ireland- in this instance- seem to be bending the rules to a ridiculous extent- and I will tell you now, if they are investigated they will get into trouble over it. If, as others are suggesting, they are counting bonuses as a matter of course- unless you have a contract guaranteeing this bonus (in which case its not a bonus at all but rather a part of your regular remuneration), they are in the wrong.

  • Registered Users Posts: 129 ✭✭AySeeDoubleYeh

    in my case it is a contract, which states something like 'employee is entitled to an annual discretionary bonus of...,' so i guess discretionary is doing some heavy lifting!

    Mind you, the bonus has been paid every year for over a decade now. I know the system is the system, but it seems more logical to factor (at least some % of) this in than out imo.

  • Registered Users Posts: 3,829 ✭✭✭3DataModem

    BOI are relying on employment law precedent, i.e. that bonuses paid consistently for 2+ years could be argued to be deemed guaranteed should it be taken as a case. Whatever gets their sales reps their targets I suppose, as they continue on their slow inexorable decline.

  • Moderators, Society & Culture Moderators Posts: 32,274 Mod ✭✭✭✭The_Conductor

    The word 'discretionary' should have alarm bells ringing.

    All we need is a downturn- and regardless of precedent, this 'bonus' could get yanked with little/no notice..........

    Bonuses are specifically addressed in the guidance to commercial lenders from the Central Bank- and are verboten.

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  • Registered Users Posts: 64 ✭✭Commoner

    The Bank of Ireland CEO was moaning about the bankers bonus cap (or as the financial elites call it; "remuneration" !!). When I saw what the CEO's of some Banks did to our Country during the celtic tiger and 2008 crisis...

    The Bank bonus culture should be dealt with by retroactive taxes! The departing CEO who takes up a new higher paid job should get hit with a hefty back-tax or if they take up residence abroad and then decide to return to Ireland at some point in the future, their repatriated capital gets taxed if they repatriate it here. Apply only to select individuals rather than everyone. I know a Barrister who told me could be done! 


    Post edited by Commoner on