Meaning Of Set On & Set Off In Payment Of Bonus Act
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Meaning Of Set On & Set Off In Payment Of Bonus Act

mailnikhil Started The Discussion:

Dear members, What is set on & set off in Payment of Bonus Act? Please explain by example. Regards, Nikhil Sharma, Jaipur

pbskumar2006 - Member Since: Mar 2006
Dear Sharma ji,

Please see the below clarification and attachment for your clarification on 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 amount of 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 a 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 an 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 amount of minimum bonus payable to the employees in 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 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 forth accounting year in the manner illustrated in the forth schedule.
(3) The principle of set on and set off as illustrated in the forth schedule shall apply to all other cases not coved 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 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


Attached FilesProvided by community member pbskumar2006. Join us to learn and grow with your peers.
File Type: pdf PAYMENT OF BONUS ACT-CHECKLIST.pdf (21.2 KB, 652 views)
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