Disclosed herein are techniques and computer readable media containing instructions arranged to determine a bit allocation for a temporal base layer and at least one temporal enhancement layer. The techniques are enhanced to yield improved reproduced quality for the case where both a temporal base layer and at least one temporal enhancement layer is being used. An exemplary method for determining a bit allocation to one base layer includes initializing a bit allocation between the base layer and the at least one enhancement layer, determining a quality difference between the base layer and the at least one enhancement layer, expressed, for example, in the Quantizer Parameter of the last picture of each layer within a GOP, and determining a new bit allocation between the base layer and the at least one enhancement layer based on the quality difference and at least one constant factor.