Dear All Pls. tell me the actual meaning of Set on & Set off in bonus Act. regards Rahul
From France, Paris
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12From France, Paris
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Dear,
These are terms used in the Bonus Act to decide the percentage of bonus to be paid to employees.
Set on - First, we calculate allocable surplus, and out of that surplus, we pay bonus. After paying the maximum bonus, i.e., 20%, if some amount is left, the balance is called set on, and this amount is kept in reserve for the future.
Set off - If in any accounting year you do not have sufficient surplus and are unable to pay the minimum bonus of 8.33%, then, legally, you have to pay 8.33%. The balance amount that you do not have in surplus will be shown as set off for the future.
You have to take care of set off/on in the future before deciding the rate of the bonus.
Thanks,
J. S. Malik
From India, Delhi
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These are terms used in the Bonus Act to decide the percentage of bonus to be paid to employees.
Set on - First, we calculate allocable surplus, and out of that surplus, we pay bonus. After paying the maximum bonus, i.e., 20%, if some amount is left, the balance is called set on, and this amount is kept in reserve for the future.
Set off - If in any accounting year you do not have sufficient surplus and are unable to pay the minimum bonus of 8.33%, then, legally, you have to pay 8.33%. The balance amount that you do not have in surplus will be shown as set off for the future.
You have to take care of set off/on in the future before deciding the rate of the bonus.
Thanks,
J. S. Malik
From India, Delhi
Acknowledge(1)Amend(0)
Dear Seniors how to calculate the percentage of bonus to be paid according the set on amount in a perticular financial year. B. prasad 01294092235
From India, Gurgaon
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From India, Gurgaon
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Amendment to Payment of Bonus Act 2015.jpg
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