The Forum of Free Enterprise is a non-political organization founded in 1956 by A. D. Shroff, and has been established to educate public opinion in India on free enterprise and a democratic way of life. The Forum publishes booklets to further its objects. The following booklet is titled “The Bonus Problem” is authored by Y. D. Joshi, S. R. Mohan Das and Dr. M. C. Munshi. “The Bonus Problem” is divided in three parts – “The Historical Perspective”, “An Anarchic Compensation Method” and “An Economic Analysis”. In the first part the respective author deals with the history of the bonus problem, where it is showcased that despite this problem being existent for a lot many years, a definition of a bonus has still not been made clear. The second part the author begins with the importance of structure and organisation in a “compensation system”. The author then gives a few indications for a new system, based on the incompetence of the current systems. Lastly, in the third part, the author performs an economic analysis of the bonus payment system. For the cause of which he introduces, terminology, for better understanding of the subject.