Introduction to Bonus
💡 What is a Bonus?
Extra reward for earning profit!
When a company makes profit, it shares a part of it with the employees who helped earn it. That extra payment is called a Bonus.
Salary
Paid every month — fixed
+
Bonus
Paid once a year — if profit!
🔄 Step-by-Step: How Bonus Reaches You
01
Company
Earns Profit
Earns Profit
→
02
Fix Bonus
Rate (%)
Rate (%)
→
03
Calculate
Total Bonus
Total Bonus
→
04
Divide Among
Employees
Employees
→
05
You Get
Your Bonus!
Your Bonus!
🥧 How Bonus is Split
80% → Employees
Shared equally among all staff
20% → Welfare Fund
Goes to company welfare
⚠️ No Profit = No Bonus!
📜 Quick Facts — Nepal Bonus Act
Up to 1%
of net profit for public enterprises
Max 3 Months' Salary
per employee per fiscal year
Divided Equally
among all employees of the company
Only When Profitable
company must earn profit to give bonus
🏢 Companies That Give Bonus in Nepal
⚡
Nepal Electricity Authority
Public Enterprise
📡
Nepal Telecom
Public Enterprise
🛢️
Nepal Oil Corporation
Public Enterprise
💧
Nepal Water Supply
Public Enterprise
Bonus Formulas
📐 Formula 1 – Find Total Bonus Amount
Total Bonus =
Bonus Rate × Total Profit100
Use this when you know the bonus rate (%) and the total profit. This gives the total bonus fund to be distributed among all employees.
📐 Formula 2 – Find Bonus per Employee
Bonus per Employee =
Total Bonus AmountNumber of Employees
Use this when you know the total bonus pool and the number of employees. Divide equally among all employees.
📐 Formula 3 – Find Bonus Rate
Bonus Rate (%) =
Total Bonus × 100Total Profit
Use this when you know the bonus amount and the total profit. It tells you what percentage of profit was distributed as bonus.
📐 Formula 4 – Find Total Profit
Total Profit =
Total Bonus × 100Bonus Rate
Use this when you know the total bonus and the bonus rate percentage. This helps you find the original profit of the company.
📐 Formula 5 – Find Total Bonus from Per-Employee Bonus
Total Bonus = Number of Employees × Bonus per Employee
Use this when you know the per-employee bonus and the total number of employees to find the total bonus fund.
🔤 Variable Key
P = Total Profit (Rs.)
B = Total Bonus Amount (Rs.)
R = Bonus Rate (%)
n = Number of Employees
Examples
Example 1 of 3
An industry has made a profit of Rs. 40,00,000 in a year. It has decided to distribute 60% of profit to 80 employees working in that industry. Find out how much amount each employee will receive as a bonus that year.
✏️ SOLUTION
Given: Total Profit = Rs. 40,00,000 | Bonus Rate = 60% | Number of Employees = 80
1
Total Profit = Rs. 40,00,000
2
Bonus amount to be distributed = 60% of Rs. 40,00,000
3
Apply formula: 60100 × 40,00,000 = Rs. 24,00,000
4
Total number of employees = 80
5
Bonus per employee: 24,00,00080 = Rs. 30,000
✅ Each employee receives Rs. 30,000 as a bonus that year.
Example 2 of 3
A hotel has made a profit of Rs. 50,00,000 in a year. A certain percentage of profit was distributed to 55 employees working in that hotel equally at the rate of Rs. 50,000 per employee. What percentage of profit did the hotel distribute? Calculate.
✏️ SOLUTION
Given: Total Profit = Rs. 50,00,000 | Employees = 55 | Bonus per employee = Rs. 50,000
1
Total yearly profit of the hotel = Rs. 50,00,000
2
Bonus distributed to each employee = Rs. 50,000 | Total employees = 55
3
Total bonus amount = 55 × Rs. 50,000 = Rs. 27,50,000
4
Percentage of bonus distributed: 27,50,00050,00,000 × 100 = 55%
✅ The hotel distributed 55% of its profit as bonus.
Example 3 of 3
A factory distributes bonus to its 120 employees. The factory made a profit of Rs. 60,00,000 and the bonus rate is 25%. Find: (a) Total bonus amount, and (b) Bonus received by each employee.
✏️ SOLUTION
Given: Profit = Rs. 60,00,000 | Rate = 25% | Employees = 120
(a) Total Bonus Amount
1
Formula: Total Bonus = Rate × Profit100
2
Substitute: 25 × 60,00,000100 = Rs. 15,00,000
✅ Total Bonus Amount = Rs. 15,00,000
(b) Bonus per Employee
1
Formula: Bonus per Employee = Total BonusNo. of Employees
2
Substitute: 15,00,000120 = Rs. 12,500
✅ Each employee receives Rs. 12,500 as bonus.
Solved Questions