---
title: "Bonus Calculation Rules"
slug: "bonus-calculation-rules"
description: "Step by step to create bonus calculation rules that are applied based on grades and are used for calculating the performance review bonus."
tags: ["IT Pro"]
updated: 2023-03-01T20:44:28Z
published: 2023-03-01T20:44:28Z
canonical: "help.lanteria.com/bonus-calculation-rules"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.lanteria.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Bonus Calculation Rules

The bonus calculation rules define how the [bonus](/v1/docs/performance-review-bonuses-1) amounts are calculated during the [performance review](/v1/docs/performance-review-process).

Follow these steps to set up bonus calculation rules:

1. Go to **Settings > Settings and Configuration > Compensation**.
2. Click **Bonuses** in the left panel and click **Edit** next to the **Bonus Calculation Rules** setting name on the **Advanced** tab.
3. The **Bonus Calculation Rules** list will open in spreadsheet view where you can directly edit the information you need.  
![](https://cdn.document360.io/c315c68d-2799-4fcc-9a39-084315b58f14/Images/Documentation/img178(2).png)
4. Alternatively, click **Compensation** > **Ranges and Grades** > **Grades**. Create a job grade or click the **Details** link next to the grade name to open the **Grade Profile** and click the **Add** button in the **Bonus Calculation Rules** section. This will open the bonus calculation rule details form.  
![](https://cdn.document360.io/c315c68d-2799-4fcc-9a39-084315b58f14/Images/Documentation/img179.png)
5. Enter the rule name into the **Title** field.
6. Enter the target bonus percent into the **Target Bonus Percent** field, which is the minimal bonus percent an employee will get for meeting the requirements during performance review. If an employee performs better than required, the bonus amount is prorated depending on the performance review scores.
7. Enter the maximum bonus percent into the **Max Bonus Percent** field, which is the maximum bonus percent an employee might get for performing better than expected during a performance review.
8. Select the grades this calculation rule will apply to in the **Grades** field or select the appropriate check boxes in the drop-down list in the **Grades** column in spreadsheet view.
9. If the rule is country-specific, select the country this rule will apply to from the drop-down list in the **Country** field.
10. Click **Save**.

## Related

- [Performance Review Bonuses](/performance-review-bonuses-1.md)
- [Job Grades](/job-grades.md)