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About this tool
Calculate your bonus payout from target variable pay, performance rating multipliers, company payout factor and proration.
The Bonus and Variable Pay Calculator converts a target variable pay figure into the amount that actually reaches your account. Enter variable pay as a share of CTC or as a fixed annual number, then apply your individual rating multiplier, the company or business payout factor and the months you were eligible. It shows the gross payout, the tax deducted and what each quarterly or annual cycle pays out.
Open Bonus and Variable Pay Calculator on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Individual rating and company payout factor are applied separately, the way most Indian bonus schemes actually work.
Mid-year joiners and exits get the correct months-out-of-twelve target instead of a full-year number.
Splits the payout across annual, half-yearly, quarterly or monthly cycles, gross and net of tax.
Variable pay is usually a stated percentage of CTC held back from fixed pay. The payout is the target amount multiplied by your individual performance factor and by a company or business unit achievement factor, prorated for the months you were eligible during the performance year.
Multipliers vary by employer, but a common ladder is around 130-150% for a top rating, 110-125% for exceeds expectations, 100% for meets expectations, 50-80% for partially meets and nil for below expectations. Always use the grid published in your own policy.
A performance bonus is fully taxable as salary in the year it is received, and the employer deducts TDS at your applicable slab rate. Because a lump-sum bonus can push the month's TDS higher, the in-hand amount often looks smaller than expected before the year-end reconciliation.
No. Statutory bonus under the Payment of Bonus Act 1965 applies to employees drawing wages up to 21,000 per month and is payable at between 8.33% and 20% of eligible wages. Performance variable pay is a separate contractual arrangement and is not governed by that Act.
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