To calculate bonus, first arrive available surplus by deducting Tax, depreciation, developmental rebate etc. on gross profit. (Better you consult an expert in this regard). Find allocable surplus which is 67% of available surplus for companies and 60% for Banking Institutions. Distribute this allocable surplus among the eligible employees, subject to the following restrictions.
If the allocable surplus is sufficient for 20% or more, maximum bonus is 20%. If any excess, it can be carried forward (up to a maximum of another 20%) to next four years, which is called Set On. If allocable surplus is 8.33% or below, bonus payment will be 8.33%. Balance amount can be adjusted from next four years called Set Off. If allocable surplus is in between 8.33% and 20%, the actual percentage has to be paid.
Please note that 8.33% is the percentage form of 1/12. Accordingly it is one month payment for one year. Similarly 20% is equivalent to 2.4 times of salary.
EX-gratia is not statutory. It is the payment beyond ceiling or to the employees beyond coverage limit. I
Abbas.P.S