# Bonus Calculations [closed]

According to our company (UAE based company) policy yearly bonus given on below mentioned formula

60% of employees performance + 40% company growth

My basic salary is 9540 and our company have yearly growth is 4%

My rating is 7 out of 10

Anybody have idea ,how to calculate yearly bonus depending above mentioned formula.

Thanks

• That's not enough information. There's nothing in your company policy that says how much of that "growth" goes into employee bonuses; and of course without knowing company valuation we don't know how much money that 4% represents anyway. – Ernest Friedman-Hill Jun 20 '16 at 19:27

As a comment says, there's not really enough information here to provide a sure way to project your bonus. That may be an intentional decision from your employer.

That said, one possible method of calculating your bonus would be to insert your rating and the growth amount into the formula for the computation. However, it seems likely that we'd also have to assume some maximum bonus, which may be based on your salary, experience, level, etc. For argument's sake (and easy computation), let's say that your maximum bonus is 10% of your salary. Then, putting all this together, the formula would be:

Bonus = Max bonus * (performance + growth)

which expands to:

Bonus = 10% * Salary * (.6 * rating + .4 * growth)

Plugging in the numbers, you get:

Bonus = 0.1 * 9540 * (0.6 * 0.7 + 0.4 * 0.04) = 415.94

However, I stress that this is speculative. To really find out, you'll have to bring it up with your employer; however, don't be surprised if they won't tell you any more.

• Why the downvote? – GreenMatt Jun 20 '16 at 19:56

That's not enough information. There's nothing in your company policy that says how much of that "growth" goes into employee bonuses; and of course without knowing company valuation we don't know how much money that 4% represents anyway.

The bottom line is that a "formula" like that can be used to explain how much one employee gets relative to another, but not how much any one employee gets in absolute terms.