Dear members, What is set on & set off in Payment of Bonus Act? Please explain by example. Regards, Nikhil Sharma, Jaipur
From India, Delhi
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41From India, Delhi
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Dear Sharma ji,
Please see the below clarification and attachment for your clarification on the Payment of Bonus Act.
Sec. 15
SET ON AND SET OFF OF ALLOCABLE SURPLUS:
(1) Where for any accounting year, the allocable surplus exceeds the maximum bonus payable to the employees in the establishment under Sec. 11, then the excess shall, subject to a limit of 20 percent of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the 4th accounting year to be utilized for the purpose of payment of bonus in the fourth schedule.
(2) Where for any accounting year, there is no available surplus or allocable surplus in respect of that year falls short of the minimum bonus payable to the employees in the establishment under Sec. 10, and there is no amount or sufficient amount carried forward and set on under sub-sec. (1) which could be utilized for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in the manner illustrated in the fourth schedule.
(3) The principle of set on and set off as illustrated in the fourth schedule shall apply to all other cases not covered by sub-sec. (1) or sub-sec. (2) for the purpose of payment of bonus under this act.
(4) Where in any accounting year any amount has been carried forward and set on or set off under this section, then in calculating the bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into account.
Regards,
PBS KUMAR
From India, Kakinada
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Please see the below clarification and attachment for your clarification on the Payment of Bonus Act.
Sec. 15
SET ON AND SET OFF OF ALLOCABLE SURPLUS:
(1) Where for any accounting year, the allocable surplus exceeds the maximum bonus payable to the employees in the establishment under Sec. 11, then the excess shall, subject to a limit of 20 percent of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the 4th accounting year to be utilized for the purpose of payment of bonus in the fourth schedule.
(2) Where for any accounting year, there is no available surplus or allocable surplus in respect of that year falls short of the minimum bonus payable to the employees in the establishment under Sec. 10, and there is no amount or sufficient amount carried forward and set on under sub-sec. (1) which could be utilized for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in the manner illustrated in the fourth schedule.
(3) The principle of set on and set off as illustrated in the fourth schedule shall apply to all other cases not covered by sub-sec. (1) or sub-sec. (2) for the purpose of payment of bonus under this act.
(4) Where in any accounting year any amount has been carried forward and set on or set off under this section, then in calculating the bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into account.
Regards,
PBS KUMAR
From India, Kakinada
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