No Tags Found!

mishrashashi1@rediffmail.com
Dear Friends, Please if you can advise as to how to set on and set off the allocable surplus is calculated as per Bonus Act
From India, Mumbai
nanu1953
334

I will request to read the PB Act in details where Available Surplus, Allocable Surplus, Set ON , Set Off etc are explained in different sections. Moreover, at the schedule how the 4 years movement of Set On and Set Off take place also has been explained with example.

However, for your easy understanding let me try to explain it simply.

Basically, the Bonus calculation is start from Profit and Loss Account of any organization. Finance/Accounts department Calculate as per guidance of the PB Act firstly the Available Surplus. In case of financial organization allocable surplus is 50% of available surplus and for non financing organization it is 60%.

If there is no available surplus - no allocable surplus and bonus % will be 8.33 as minimum bonus if the organization already enjoyed Bonus holiday period. If there is available surplus - there will be allocable surplus. After adjustment of Set Off if any , then from the left over amount of allocable surplus % of bonus will be determined.

If there is no Set off but there is set on, then to pay higher % of bonus subject to maximum 20% bonus (maximum limit) may be taken from the set on amount if the allocable surplus is not sufficient.

There may be situation when allocable surplus is much more than 20% bonus amount and in that case bonus will be 20% and maximum 20% equivalent amount will be Set On.

In India except MNCs, Big Indian House and some serious organizations, no other organizations are calculating bonus as per PB Act. It is basically 8.33% for majority organizations and there are few who are paying some more. It is nothing but Customary Bonus and in many places exploitation by paying less bonus.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions

From India, New Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR

All Copyright And Trademarks in Posts Held By Respective Owners.