discretionary payment
[/dɪˈskriʃəneri ˈpeɪmənt/]
nounpl: discretionary payments
pagamento discricionário
1. A payment made at the discretion or choice of the payer, not legally required or obligatory
The bonus is a discretionary payment that depends on company performance.
O bônus é um pagamento discricionário que depende do desempenho da empresa.
2. A payment that is optional and subject to individual judgment or decision-making authority
Tips are discretionary payments made by customers to service workers.
Gorjetas são pagamentos discricionários feitos por clientes aos prestadores de serviços.
3. In finance and budgeting, an expenditure that is not essential and can be deferred or eliminated
The company must reduce discretionary payments during economic downturns.
A empresa deve reduzir os pagamentos discricionários durante crises econômicas.
In Brazilian business culture, discretionary payments such as bonuses (bônus) and performance incentives are common but not guaranteed, reflecting flexibility in compensation structures. In the United States, discretionary payments like tips are culturally expected in service industries, with amounts often ranging from 15-20%. The concept is crucial in both countries' budgeting practices, distinguishing between essential expenses and flexible spending.
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