Hi,
Can anybody explain in detail about the bonus set on set off? What is the purpose of bonus registers e.g. A, B, C registers? After how many days is any employee eligible for a bonus? How is the percentage of the bonus decided?
Thank you.
From India, New Delhi
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1Can anybody explain in detail about the bonus set on set off? What is the purpose of bonus registers e.g. A, B, C registers? After how many days is any employee eligible for a bonus? How is the percentage of the bonus decided?
Thank you.
From India, New Delhi
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Dear associates,
It is a well-known fact that the minimum and maximum bonus payable are 8.33% and 20% respectively. To calculate the bonus figure from the P&L account after tax deduction, 40% of the income shall be set aside to disburse bonus payments for the present and future years as reserves to be made every consecutive year. In order to overcome the bonus burden, set aside 40% of the profit made for the first year and keep an additional 20% for subsequent year payments as a safety measure. For example, if a company makes a profit of Rs. 50,00,000 for the year, 40% of 50 lakhs shall be set aside (Rs. 20 lakhs), and Rs. 15 lakhs paid as a bonus for the year. The balance of Rs. 5 lakhs shall be carried forward for the next year (set-off). This process will continue once bonus payments begin, regardless of the bonus infancy period (5 years).
Best regards,
Chandrashekar
Bangalore
From India, Bangalore
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It is a well-known fact that the minimum and maximum bonus payable are 8.33% and 20% respectively. To calculate the bonus figure from the P&L account after tax deduction, 40% of the income shall be set aside to disburse bonus payments for the present and future years as reserves to be made every consecutive year. In order to overcome the bonus burden, set aside 40% of the profit made for the first year and keep an additional 20% for subsequent year payments as a safety measure. For example, if a company makes a profit of Rs. 50,00,000 for the year, 40% of 50 lakhs shall be set aside (Rs. 20 lakhs), and Rs. 15 lakhs paid as a bonus for the year. The balance of Rs. 5 lakhs shall be carried forward for the next year (set-off). This process will continue once bonus payments begin, regardless of the bonus infancy period (5 years).
Best regards,
Chandrashekar
Bangalore
From India, Bangalore
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Dear Mr. Chandrashekar,
Thank you for sharing your knowledge. Can you also please explain the registers of bonus and the eligibility of employees? If a company is not presently making a profit, what are the provisions in that case?
Regards
From India, New Delhi
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Thank you for sharing your knowledge. Can you also please explain the registers of bonus and the eligibility of employees? If a company is not presently making a profit, what are the provisions in that case?
Regards
From India, New Delhi
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Dear Rawat,
The eligibility wages/salary are Rs.11,000, whereas the bonus shall be declared on Rs.3500 (earned). In other words, employees drawing a salary up to Rs.10,000 are eligible, but the calculation of the bonus is based on Rs.3500, not Rs.10,000.
Minimum Bonus
From India, Bangalore
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The eligibility wages/salary are Rs.11,000, whereas the bonus shall be declared on Rs.3500 (earned). In other words, employees drawing a salary up to Rs.10,000 are eligible, but the calculation of the bonus is based on Rs.3500, not Rs.10,000.
Minimum Bonus
From India, Bangalore
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