Are my below 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 10,000/-.
From India, Mumbai
Acknowledge(0)
Amend(0)
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 10,000/-.
From India, Mumbai
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Set on= (Available surplus-Max Bonus) or (Allocable Surplus-Max Bonus) need clarification??
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Looking for something specific? - Join & Be Part Of 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 Calculation.xls
BONUS CALCULATION RULE (1).pdf