奖金 (jiǎng jīn) literally combines 奖 (jiǎng), meaning 'award' or 'prize', and 金 (jīn), meaning 'gold' or, by extension, 'money'. Together, it refers to extra monetary compensation given for achievement, performance, or special circumstances — not part of regular salary. It is commonly used in workplace contexts (e.g., year-end bonuses, sales incentives) and competitive settings (e.g., prize money for winning a contest).

Unlike fixed wages, 奖金 is usually discretionary, variable, and tied to specific criteria such as meeting targets, exceptional service, or winning an award. It carries a positive connotation of recognition and reward. While often associated with formal employment, it may also appear in academic, artistic, or athletic contexts — for instance, a university offering research bonuses or a sports federation awarding prize money to medal winners.