Are My Examples for Set-On and Set-Off Correct?
The formula for set-on is (Available surplus - Max Bonus) or 20% of Salary, whichever is less. For example, the available surplus of Company "A" in the year 2012-13 is Rs 10,00,000/-. The Allocable Surplus for that year is Rs 600,000/- (for non-banking companies at 60% of available surplus). Let's assume the salary payable by Company A in the year 2012-13 is Rs 12,00,000/-. The Max Bonus by Company A in that year at 20% in the year 2012-2013 is Rs 2,40,000/-. Therefore, the set-on for the year 2013-14 is (Available surplus - Max Bonus) or 20% of Salary, whichever is less, equaling Rs 600,000 - Rs 2,40,000 = Rs 3,60,000/-. Hence, Rs 2,40,000/- is the set-on since Rs 3,60,000/-.
Example of Set-Off
The formula for set-off is (Minimum Bonus - Available surplus). For example, the minimum bonus to be paid by a company is Rs. 100,000/- while the Allocable surplus is Rs 10,000/-.
From India, Mumbai
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9The formula for set-on is (Available surplus - Max Bonus) or 20% of Salary, whichever is less. For example, the available surplus of Company "A" in the year 2012-13 is Rs 10,00,000/-. The Allocable Surplus for that year is Rs 600,000/- (for non-banking companies at 60% of available surplus). Let's assume the salary payable by Company A in the year 2012-13 is Rs 12,00,000/-. The Max Bonus by Company A in that year at 20% in the year 2012-2013 is Rs 2,40,000/-. Therefore, the set-on for the year 2013-14 is (Available surplus - Max Bonus) or 20% of Salary, whichever is less, equaling Rs 600,000 - Rs 2,40,000 = Rs 3,60,000/-. Hence, Rs 2,40,000/- is the set-on since Rs 3,60,000/-.
Example of Set-Off
The formula for set-off is (Minimum Bonus - Available surplus). For example, the minimum bonus to be paid by a company is Rs. 100,000/- while the Allocable surplus is Rs 10,000/-.
From India, Mumbai
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Dear friends, Calculation on Set On and Set Off in the above posting is correct. Note : The calculation on Set Off provision is incomplete. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Well explained, but incomplete as said. I request any one can continue the above complete Set off caliculation with the given example. Many thanks in advance. Eagerly waiting ......!!!
From India, Mumbai
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From India, Mumbai
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Set on= (Available surplus-Max Bonus) or (Allocable Surplus-Max Bonus) need clarification??
From India, Mumbai
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From India, Mumbai
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf