Q: My business is low on cash. Can I offer my workers a “bonus” if they agree to delay payment of wages for a month?

A: Once wages are due, it is prohibited to offer the workers an additional amount for delay of payment, because awaiting payment of owed wages is considered a “loan” to the employer and the “bonus” is considered ribbis on this loan (Y.D. 173:12). Therefore, the contract cannot stipulate additional, increasing charges for delayed payment. Even if the employer withheld the wages without consent, the worker is not entitled to receive interest on the delayed wages (Shach 176:8; Bris Yehuda 2:17). However, after the salary is paid, some authorities permit a small bonus if it is not linked to the delay in salary. An employer may distribute a holiday bonus or issue the next paycheck ahead of schedule (Shach Y.D. 160:10; The Laws of Ribbis 10:13). Also, if the wages are not due yet, it is permissible to extend the job and pay a higher amount at the end. For example, if a person hired a painter and wants to delay payment, he can suggest – before the work is finished – to also paint the pantry later and add for the delay till then. This is permitted because the homeowner has no obligation to pay until the job is finished, so awaiting payment until then is not considered a “loan” to him (Y.D. 173:12).