For calculation of Bonus % it starts from Gross Profit of P & L Account. After adding and deducting some items as per PB Act it will be Available Surplus. As per PB Act and the nature of the organization certain % will be considered as Allocable Surplus.
As on date the Bonus is paid based on actual Basic & DA, 7000/- or Minimum wages of the job grade which ever is higher. There are organizations who has one balance sheet but organization set up in different States of India. As minimum wages are State base and skilled base, therefore it will be required to calculate minimum 8.33% bonus on weighted average method first. If there is more allocable surplus than to pay minimum bonus, then the % of bonus should be calculated by unitary method.
If the % OF BONUS is more than 20% ,the excess of 20% subject to maximum another 20% will be booked as SET ON . IF the allocable surplus is not sufficient to pay minimum bonus 8.33%, then the excess amount paid by the organization will be considered as SET OFF. Both SET ON & SET OFF will continue for 4 years and in between 4 years if there is more allocable surplus in a particular year in the form of SET ON can be adjusted against the earlier SET OFF or to pay more % of Bonus.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
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