Employee Benefits

Example of bonus schemes:

Bonus before bonus and before tax

- the bonus is computed as a percentage of the profit before deducting the bonus and income tax
expense.

Formula: B = P x Br

Bonus after bonus and before tax (example of bonus schemes)

- the bonus is computed as a percentage of the profit after deducting the bonus but before deducting
income tax expense.

Formula: B = P - __P__

1+Br

Bonus before bonus after income tax

- the bonus is computed as a percentage of the profit before deducting the bonus but after deducting
income tax expense.

Formula: B = P x _ 1 – Tr_

1/Br - Tr

Bonus after bonus and after tax

- the bonus is computed as a percentage of the profit after deducting the bonus and income tax
expense.

Formula: B = P x ___1 - Tr___

1/Br - Tr + 1