Hi! Can someone kindly help me with the calculation of the Allocable surplus, Set Off and Set On under THE PAYMENT OF BONUS ACT. Do kindly explain with examples. Regards, Shyamali
From India, Nasik
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16From India, Nasik
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Dear Shrami,
As per the Bonus Act, first, we need to calculate the available/allocable surplus based on the financial sheet you arrived at in your concern (from A & B).
Calculation:
Available Surplus = Net Profit - Direct/Indirect Tax payable by the employer Tax Payable.
Allocable Surplus = 60% of Available Surplus,
in the case of Foreign Companies, it's 67% of Available Surplus.
To calculate the amount of bonus in respect of the Accounting Year, Allocable Surplus is computed after considering the amount of Set ON & Set OFF from the previous year.
The amount so computed from Allocable Surplus is distributed in proportion to Wages/Salaries received by them during the Accounting Year.
Min: 8.33% and Max 20% have to be paid.
Eligibility: Drawing Salaries from 2500 to 3500 will be paid on the basis of Rs. 2500/-
If you are still unclear, please get back to me.
Regards,
Rangaraj
From Canada, Toronto
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As per the Bonus Act, first, we need to calculate the available/allocable surplus based on the financial sheet you arrived at in your concern (from A & B).
Calculation:
Available Surplus = Net Profit - Direct/Indirect Tax payable by the employer Tax Payable.
Allocable Surplus = 60% of Available Surplus,
in the case of Foreign Companies, it's 67% of Available Surplus.
To calculate the amount of bonus in respect of the Accounting Year, Allocable Surplus is computed after considering the amount of Set ON & Set OFF from the previous year.
The amount so computed from Allocable Surplus is distributed in proportion to Wages/Salaries received by them during the Accounting Year.
Min: 8.33% and Max 20% have to be paid.
Eligibility: Drawing Salaries from 2500 to 3500 will be paid on the basis of Rs. 2500/-
If you are still unclear, please get back to me.
Regards,
Rangaraj
From Canada, Toronto
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please qote an example for the set off & set on calculation for payment of bonus regards rejimon
From India, Bangalore
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From India, Bangalore
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The eligibility for the bonus is now Rs. 10,000/- per month however, the calculation/computation will be on 3500/- per month.
From India, Calcutta
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From India, Calcutta
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Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc