Sir I want to now about FORM A & FORM B under Bonus act Form A - Computation of the allocable surplus Form B - SET-ON AND SET-OFF OF ALLOCABLE SURPLUS UNDER SECTION 15
From India, Lucknow
Acknowledge(0)
Amend(0)
From India, Lucknow
Acknowledge(0)Amend(0)
For calculation of Bonus %, it starts from Gross Profit of P&L Account. After adding and deducting some items as per the PB Act, it will be Available Surplus. As per the PB Act and the nature of the organization, a certain percentage will be considered as Allocable Surplus.
As of the current date, the Bonus is paid based on actual Basic & DA, INR 7000/- or the Minimum wages of the job grade, whichever is higher. There are organizations that have one balance sheet but are set up in different States of India. As minimum wages are State-based and skill-based, it will be necessary to calculate a minimum 8.33% bonus on a weighted average method first. If there is more allocable surplus than required to pay the minimum bonus, then the percentage of bonus should be calculated using the unitary method.
If the bonus percentage exceeds 20%, the excess over 20%, subject to a maximum of another 20%, will be booked as SET ON. If the allocable surplus is not sufficient to pay the minimum bonus of 8.33%, then the excess amount paid by the organization will be considered as SET OFF. Both SET ON and SET OFF will continue for 4 years, and within these 4 years, if there is more allocable surplus in a particular year in the form of SET ON, it can be adjusted against the earlier SET OFF or used to pay a higher percentage of Bonus.
S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531
USD HR Solutions - To Strive towards excellence with effort and integrity
From India, New Delhi
Acknowledge(0)Amend(0)
367As of the current date, the Bonus is paid based on actual Basic & DA, INR 7000/- or the Minimum wages of the job grade, whichever is higher. There are organizations that have one balance sheet but are set up in different States of India. As minimum wages are State-based and skill-based, it will be necessary to calculate a minimum 8.33% bonus on a weighted average method first. If there is more allocable surplus than required to pay the minimum bonus, then the percentage of bonus should be calculated using the unitary method.
If the bonus percentage exceeds 20%, the excess over 20%, subject to a maximum of another 20%, will be booked as SET ON. If the allocable surplus is not sufficient to pay the minimum bonus of 8.33%, then the excess amount paid by the organization will be considered as SET OFF. Both SET ON and SET OFF will continue for 4 years, and within these 4 years, if there is more allocable surplus in a particular year in the form of SET ON, it can be adjusted against the earlier SET OFF or used to pay a higher percentage of Bonus.
S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531
From India, New Delhi
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Stuck with an HR fire? Get a verified answer before your next coffee. - Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Bonus Act-FORM-D.doc