---
title: "Bonus Calculation Settings"
slug: "bonus-calculation-settings"
description: "For bonus to be calculated, the following must be set up: job grades, bonus calculation rules and the Calculate Bonus check box for review round."
tags: ["HR"]
updated: 2023-03-06T20:56:55Z
published: 2023-03-06T20:56:55Z
canonical: "help.lanteria.com/bonus-calculation-settings"
---

> ## 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 Settings

For bonus to be calculated, the following prerequisites must be met:

- The **Calculate Bonus** check box must be selected when starting a review round
- Job grades must be created under **Compensation** > **Ranges and Grades** or using the [**Compensation Settings**](/v1/docs/compensation-settings) section in **Settings** > **Settings and Configuration**.
- Bonus calculation rules must be created for job grades under **Settings** > **Settings and Configuration > Compensation** > **Bonuses** > [**Bonus Calculation Rules**](/v1/docs/bonus-calculation-rules) or **Compensation** > **Ranges and Grades** > **Grades.** Bonus calculation rules define the target bonus percent (percent of the base salary employee will get in case of the good performance) and the maximum bonus percent that the employee will get in case of the outstanding performance. The rules are set up for the job grades.

*Note* *For the job grade and bonus calculation rules creation process, refer to* [*Adjusting Job Grade Definition*](/v1/docs/adjusting-job-grade-profiles) *section.*

## Related

- [Start Performance Review Round](/performance-module-workflows-2.md)
- [Job Grades](/job-grades.md)
- [Bonus Calculation Rules](/bonus-calculation-rules.md)